HOUSE and Ways Committee Chair and Albay 2nd District Representative Joey Salceda has praised President Ferdinand Marcos Jr for signing the VAT on non-resident Digital Service Providers (DSPs) with its earmarking of funds for the creatives sector.
In his statement, Salceda lauded Marcos and the house for the fullfilment of his proposed bill to protect Filipino domestic creatives against foreign companies.
“For the longest time, our VAT system has taxed domestic creatives while allowing foreign companies to sell to Filipinos without any tax. This meant that our local creatives sector was competing with their hands tied behind their backs while foreigners had full access to our market. The 12% difference in treatment is no small matter – indeed, before this law, it meant that foreign creatives in the digital space could be sold cheaper than their domestic competitors” Salceda said.
He pointed out that the creation of the law ends unfair treatment, same product, same digital space, same consumers as well as the same rules and same taxes which are the logic and it’s doctrine.
Salceda believe the law will raise at least P8-12 billion in its first year, with the Executive branch having bigger estimates.
“The logical next step for foreign digital service providers will be to sell their products through local partners, which will at least allow them to charge their local expenses as input tax. That is also good, because it will create jobs for local affiliates,” the lawmaker stressed.
“A 5 percent earmark for ten years is also introduced. This will fund the creatives industry – one of the country’s most potent sources of growth. The Philippines is ASEAN’s largest creatives sector exporter, and we have an absolute advantage in this field due to our culture, predisposition, and multilingual society. It is time we invest heavily here – the way Korea did first in the aftermath of the 1997 Asian financial crisis, and then as a recovery measure during the 2008 Great Recession,” he added.
Salceda said that the Philippine creatives sector which includes artists, artisans, producers, are the biggest winners in this law.
About the Author
