Gov’t urged to grant incentives, not taxes to online sellers

Robie de Guzman

MANILA, Philippines – Senator Sherwin Gatchalian on Monday called on the government to extend fresh capital and other financial assistance, instead of implementing “untimely” new taxes to online entrepreneurs amid the novel coronavirus disease (COVID-19) pandemic.

In a statement, Gatchalian said online sellers should be covered by the microfinancing program of the Small Business Corporation (SB Corp.) under the Department of Trade and Industry to help them grow their business and recover from the economic effects of the pandemic.

The senator noted that DTI’s SB Corp. has a P1 billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (Covid19 P3-ERF) to support micro and small businesses affected by the COVID-19 crisis.

The microfinancing program offers a minimal interest rate of not more than 2.5% per month with no collateral requirement.

Micro enterprises with asset size of not more than PhP3 million may borrow PhP10,000 up to PhP200,000 while small enterprises with asset size of not more than PhP10 million may borrow a higher loan amount but will not exceed PhP500,000.

“Ang DTI ay dapat magbigay pa nga ng puhunan sa mga Pilipino na nawalan ng trabaho at gustong makaahon sa kahirapan sa pamamagitan ng pagnenegosyo sa online. Sa ganitong panahon ng pandemya, mas magandang nasa tahanan lang sila at nag-nenegosyo. Nabibigyan pa nila ng trabaho ang mga delivery service riders.” Gatchalian said.

“Hindi lang basta ayuda ang hinihingi ng mga negosyanteng ito. Ang hinihingi nila ay malaya silang bigyan ng oportunidad na makapag-negosyo para may kita sila,” he added.

Gatchalian, vice chairman of the Senate committee on economic affairs, issued the statement following Bureau of Internal Revenue’s (BIR) move to require online sellers to register their business until July 31, and pay taxes if they are earning higher than P250,000 a year.

The lawmaker believes that registering businesses with the BIR is ineffective since its system requires an applicant’s physical presence at this time when people are still being restricted from leaving their homes.

“Nakita ko na hindi rin handa ang ating pamahalaan na buwisan ang ating mga maliliit na negosyante dahil yung ultimong pagre-rehistro ay hindi pa sila handa kaya huwag na nating ipilit sa ganitong panahon ng pandemya, dahil hindi lang marami ang naghihirap kundi marami rin ang natatakot na lumabas ng kanilang bahay,” he stressed.

Aside from providing capital, Gatchalian also urged the DTI to make use of the Philippine Innovation Law to enhance the competitiveness of these online sellers.

The law aims to harness innovation efforts to help the poor, the marginalized, and MSMEs to be a part of the domestic and global supply chain.


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