It is high time for countries like the Philippines to collect value-added tax (VAT) from the digital economy to offset substantial foregone revenues felt across the region, according to a World Bank report.
The World Bank Group’s flagship World Development Report 2021 titled “Data for Better Lives” showed that in the Philippines, Indonesia, Malaysia, Singapore, Thailand and Vietnam, a combined $5 billion in potential tax revenues were lost due to their failure to apply current VAT rules on digital services.
If unaddressed, revenue losses across these six Association of Southeast Asian Nation countries would rise to more than $6 billion this year and nearly $8 billion next year, Wor…
Keep on reading: PH urged to tax digital platforms, online transactions