According to a senator, a Bureau of Internal Revenue ( BIR) order requiring some 900,000 online vendors around the country. It will register and pay taxes could just be a losing idea.
Sen. Sherwin Gatchalian, the vice-chair of the Senate Economic Affairs Committee, told the government. The Bureau of Internal Revenue could spend more on the administrative costs of tracking web-based merchants. In addition, auditing their revenues than the revenue from them that the Fir could produce.
The BIR would clearly concentrate its efforts on collecting some P70 billion in unpaid taxes from 24 Chinese-owned online gambling firms. In other words, they stand for the Philippine offshore gaming operators (POGOs). That’s all that Gatchalian said on Sunday instead of going after small businesses.
“This [BIR’s decision] is the height of insensitivity for me,” he said, pointing out that most online sellers were people who had lost their jobs because of the pandemic.
Expensive Move
“Timing is very critical in [introducing a new] taxation. It’s not right to place taxes on new or small businesses during this phase of pandemic, “Gatchalian said in a radio interview.
“The administrative costs of [online sellers’] registration, auditing and tracking may be more costly than the taxes the government will be able to raise from them,” he claimed.
Delivery Services
The senator said the move by the BIR might also expose more people from contracting the new coronavirus. There was a note that 99 percent of the country’s business owners. It has three categorization businesses, namely in micro, small and medium-sized enterprises.
Additionally, he said it could adversely impact delivery service couriers. Most of whom were motorcycle taxi drivers. The government suspended the drivers’ rights to curb the contagion.
If the BIR insists on pushing through with its plan, Gatchalian said the registration should be done at least over the internet. It aims to ensure the safety of online merchants and the general public.
‘Insensitive, Unneccesary’
Senate Majority Leader Juan Miguel Zubiri shared the position of Gatchalian. He said that the BIR order was not only insensitive but also completely unnecessary.
“Why do small entrepreneurs [Filipinos] suffer from the tax threat and encourage foreign Pogo [owners] to operate while evading or underpaid taxes? “he added.