Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. on Wednesday assured consumers that the Value-Added Tax on Digital Services Law has no major effect on their subscription to digital platforms.

“Unang-una hindi po dapat tayo mangamba dito sa VAT on Digital Service Providers because unang-una napakaganda ng layunin ng batas,” Lumagui said in a briefing with the Malacañang Press Corps.

Lumagui explained the collection of VAT from foreign Digital Service Providers (DSPs) is expected to level the playing field for local and foreign businesses, allowing the government to collect taxes from foreign businesses.

While there might be an increase on the prices of DSPs services, Lumagui explained it would be minimal. It’s also not going to be commensurate with the implementation of the 12 percent VAT.

“Hindi naman natin in-expect na magiging malaki ang pagtaas ng presyo nito kung magkakaroon man. And ang tinitingnan nga natin baka naman posible rin, malaki rin naman ang chance na hindi rin naman magtaas ang presyo ng mga produktong ito,” he said.

The VAT collection from foreign service providers would not only protect local businesses but also generate revenues to fund government projects and programs for Filipinos, Lumagui said. | PND