00:00The 12% VAT of WIS is now legal in digital services like online shopping and online videos.
00:10Will that increase the single-payer rate?
00:13This is Ivan Mayrina.
00:18Because it's cheap and safe, Patrick is often adding to his favorite online shopping platform.
00:24This is Mang Ramon.
00:26Watching online is his favorite hobby.
00:28Because it's only P150 per month, there are a lot of movies to choose from.
00:33But how about their single-payer rate in online services now that WIS will be abolished?
00:38The law for that was passed by President Bongbong Marcos earlier
00:42under the VAT on digital services law
00:44passed by Senator Pia Cayetano, Senator Wynne Gatchalian, and Congressman Joey Salceda.
00:49The 12% value-added tax on digital services providers based abroad will also be abolished.
00:56Aside from online streaming and digital goods,
00:58there are also search engines, online marketplaces, and cloud services.
01:03The President clarified that this is not a new WIS.
01:06It's been around for a long time in local digital and online services.
01:09It's just a mechanism for foreign companies to sell their online business.
01:26According to one study, half of the internet users in the Philippines buy online once a week
01:32while three out of every ten Filipino internet users pay for TV and movie streaming.
01:37Almost all of the Filipino internet users who watch online videos, even if it's free,
01:42are making a profit because of WIS.
01:45That's why the government is confident that WIS will reach P100 billion in the next five years because of the law.
01:52This is enough to build 42,000 classrooms.
01:55More than 6,000 rural health units.
01:587,000 kilometers of farm-to-market roads.
02:01Many Filipinos enjoy online, on-demand audio and video streaming platforms.
02:07With the addition of the law, 12% VAT will be imposed on these platforms.
02:11What effect will this have on our monthly subscriptions?
02:14As to whether there will be a price increase, it doesn't necessarily follow.
02:19It's a business decision by the service providers.
02:22So there can be a price increase, but again, I think it would be minimal.
02:28It's not 12% automatically.
02:30For us, it's a big deal.
02:31If they put VAT, it will be an additional expense.
02:35I hope the VAT is not too high.
02:39All that will be collected will be returned to us in terms of government services and social welfare services.
02:465% of the WIS that will be circulated in the next five years
02:49will be covered by the law that will go to the creative industries.
02:52Not to the education services like online courses and webinars.
02:57Those who do not comply with the law may be blocked by the BIR so that they can no longer operate.
03:02For GMA Integrated News, Ivan Mayrena, Katutok, 24 Horas.
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