Daily News

Digital tax bill hurdles House panel

The House Ways and Means Committee on Wednesday approved a measure that would impose a 12% value-added tax (VAT) on digital services, particularly those offered by foreign technology companies such as Facebook, Netflix, Inc., Alibaba’s Lazada and Alphabet’s Google. The move to tax the digital economy comes as the government seeks new sources of revenues after tax collections plunged due to the coronavirus pandemic. Under the measure, all digital transactions will be subjected to a 12% VAT. This would apply to service providers that operate online platforms for buying and selling, supply online advertisement services, and provide digital services in exchange for a subscription fee, among others.