Philippine legislator proposes tax on tech giants to fund COVID-19 fight

The Philippines. Photo by REY MELVIN CARAAN on Unsplash

A Philippine lawmaker has introduced a bill in parliament aimed at taxing big tech firms such as Facebook, Alphabet’s Google and Youtube, Netflix and Spotify, to raise funds to battle the coronavirus.

The bill looks to raise 29 billion pesos ($571 million) by imposing a value added tax on digital services provided in the Philippines, a key growth area for e-commerce transactions as its people are among the world’s heaviest users of social media.

“We spent to fight COVID-19 and we need more to continue fighting it and recover,” Congressman Joey Salceda, the bill’s principal author, told Reuters.

“It sends a strong signal to the world that the Philippines is ready for the digital transformation. We are putting our taxation in order.”

Starting next year, Salceda said, funds raised from new taxes would also be used to finance digital programs such as a national broadband project and digital learning, to fill the education gap caused by school closures.

But it may take a while before the proposal is scheduled for debate, as lawmakers are busy deliberating on an economic stimulus package to jumpstart the Philippine economy, ravaged by pandemic-induced lockdowns.

Google, Netflix, and Spotify were not immediately available for comment. Facebook declined to comment.

The Philippines has recorded 13,434 virus infections, including 846 deaths and 3,000 recoveries, and has run nearly 208,000 tests among its population of more than 107 million.

Last week, neighbouring Indonesia announced plans for VAT of 10% on digital products from July, to boost revenues amid the pandemic. Southeast Asian regulators held talks last year on a region-wide effort to tax tech giants more.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.