BSP wants small digital transactions to be exempt from VAT
The Bangko Sentral ng Pilipinas (BSP) wants small digital transactions to be exempted from the 12 percent value added tax (VAT).
During the ''Laging Handa'' public briefing, BSP Governor Benjamin Diokno said" it’s better to tax people on the basis of what they take away from society, rather than what you contribute to society, which is your income."
"I think it is good that the small transactions that help our people and to encourage them to use digital services will be exempted from VAT," he said.
"In general, I think VAT is a good tax, but the small transactions, let say, less than 500 pesos, exempt it from Value Added Tax," he added.
Diokno said by this year, the BSP is expected to have 50 percent of the transactions in the country become digital.
"In fact, by 2020, 20 percent, in other words one out of five peso transactions. is already digital and the performance of our economy right now is good," he said. Robina Asido/DMS
