Senate panel eyes passage of bill imposing VAT on digital transactions before end of 2023 ​

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Senate panel eyes passage of bill imposing VAT on digital transactions before end of 2023 ​
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Senator Sherwin Gatchalian on Monday, July 10 said the Senate is eyeing the passage of the bill imposing a 12 percent value added tax (VAT) on digital transactions before the end of the year. | ManilaBulletin

Senator Sherwin Gatchalian on Monday, July 10 said the Senate is eyeing the passage of the bill imposing a 12 percent value added tax on digital transactions before the end of the year.Gatchalian, chairman of the Senate Committee on Ways and Means, said the measure has already been approved by the House of Representatives, so the bill is now being finalized by the technical working group .

The Senate ways and means panel has been tackling Senate Bill No. 250, filed by Sen. Pia Cayetano and various similar measures that are pending before the committee. Gatchalian said the government is looking to collect P17-billion per year on average to P97-billion for the next five years once it is implemented.

The Philippines “is in the minority” or one of the five who do not impose VAT on digital service transactions.

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