00:00It is expected that the distribution of services to the Filipinos will be stronger.
00:05This is because President Ferdinand R. Marcos, Jr. has already strengthened a law that is expected to increase the government's income
00:14and will give more opportunities to local e-commerce providers.
00:18Ken and Paciente are in the center of the news.
00:23If you are reaping the rewards of a fruitful digital economy here,
00:28it is only right that you contribute also to its growth.
00:58This law is expected to help the government to generate more revenue and be fair to local e-commerce providers.
01:06Local DSPs are paying VAT, but their foreign competitor is taking advantage of the tax advantage
01:13resulting from unfair competition and disadvantage for local businesses.
01:19With this law, we say that if your presence in the Philippine market is as real as your profits,
01:26then your tax responsibility should also be equally tangible.
01:32But make no mistake, we are not imposing new taxes.
01:35We are simply strengthening the authority and streamlining the process of the BIR
01:40to collect value-added tax on digital services.
01:44Under the law, it is expected that up to P7.25 billion will be collected in 2025,
01:50totaling P105 billion until 2029.
01:54According to the President, 5% of the total VAT that will be collected each year
01:59will be allocated to the local creative industry and other sectors of the government for nation-building.
02:05Notwithstanding the increase in taxes, educational public interest services such as online courses,
02:12webinars, and other digital educational offerings are still easily accessible.
02:19To our partners in the digital space, let this be seen as an invitation to help build a Bagong Pilipinas
02:27where innovation flourishes, especially as we promote competition.
02:32I call for the support of all the companies and entrepreneurs who will be covered by this law.
02:37The Executive Board also ordered the relevant government agencies to ensure the proper implementation of the new law.
02:46Kenneth Paciente for Pambansang TV in Bagong Pilipinas.
