Incoming Philippine Finance Secretary Benjamin Diokno is considering taxes on digital transactions and streaming services such as Netflix Inc. subscriptions, GMA News reported.
Digital transactions have the tendency to “evade” taxes unlike purchases made over-the-counter, GMA News cited Diokno as saying. Among these digital transactions are subscription-based services such as video and audio streaming, it said.
“Right now, if these are able to evade taxes, why not tax it? It’s a service. Who can afford Netflix? Not the poor,” Diokno was quoted in the report.
President-elect Ferdinand Marcos Jr. and his economic team face pressure to raise revenue to curb debt, which had ballooned due to the pandemic. Outgoing officials have warned against financing debt with additional borrowings.