ALBAY 2nd District Representative Joey Salceda has defended the move to impose value-added tax (VAT) on imported digital services, saying it is a matter of fairness and essential to level the playing field for Filipino digital content creators.
According to Salceda, all major ASEAN economies already treat imported digital services like imported goods by subjecting them to VAT.
The Philippines, he noted, had lagged behind in this regard, resulting in unfair advantages for foreign digital companies operating tax-free in the country.
“For the longest time, a lot of our digital content producers suffered from unfair competition,” Salceda said. “Local producers paid taxes while their foreign competitors did not. There’s no way they can catch up fairly unless we clarified the law.”
He emphasized that aligning the country’s tax policies with international practices is necessary to ensure parity and protect local industries.
The lawmaker also underscored his efforts to increase earmarked funding for the local creatives sector, which continues to grapple with low government support and private investment.
In addition to supporting the local digital economy, Salceda advocated for tax exemptions on books and educational materials, saying these are consistent with international law and vital to improving access to knowledge and learning resources.
The proposed taxation measure is part of a broader push to modernize the country’s tax system in the digital age, while also strengthening the domestic creative and education sectors.
