Co-Sponsorship Speech: SBN 2528 – VAT on Digital Transactions

Co-Sponsorship Speech
of Senate President Pro Tempore Loren Legarda
Senate Bill No. 2528
“VAT on Digital Transactions”
06 February 2024
Session Hall, Philippine Senate

Mr. President, esteemed colleagues, guests.

Today, I stand before you to address an issue of paramount importance in our rapidly evolving digital landscape. As we navigate the intricacies of the 21st century, it is imperative that our legislative framework keeps pace with the dynamic nature of our economy.

I rise to express my wholehearted support and enthusiasm for co-sponsoring the bill that proposes the imposition of Value-Added Tax (VAT) on digital transactions and other digital services. This legislation represents a significant step towards modernizing our tax system, ensuring fairness, and fostering fiscal sustainability in the digital age.

In an era where technological advancements and digital platforms are shaping the way we conduct business and engage in commerce, it is crucial for our tax policies to adapt accordingly. The exponential growth of the digital economy cannot be ignored, and as responsible stewards of public finance, it is our duty to ensure that our tax system remains equitable and inclusive.

The proposed VAT on digital transactions is a strategic move that aligns with international best practices, where many countries have already embraced similar measures. This legislation will not only bring our tax policies in line with global standards but also enhance revenue generation, providing the government with the necessary resources to meet the growing needs of our citizens.

Furthermore, imposing VAT on digital services levels the playing field for businesses operating in both the traditional and digital realms. It prevents any unfair advantage that may arise from the absence of taxation on certain digital transactions. This measure fosters competition, encourages innovation, and promotes a business environment that is conducive to sustainable economic growth.

I commend the sponsors of this bill for their foresight and commitment to addressing the challenges posed by the digital economy. By co-sponsoring this legislation, we signal our dedication to creating a tax system that is not only responsive to the current economic landscape but also capable of adapting to future changes in technology and commerce.

In conclusion, I urge my esteemed colleagues to join me in co-sponsoring this vital piece of legislation. Let us work together to craft laws that reflect the realities of our digital age, promote fiscal responsibility, and ultimately contribute to the continued progress and prosperity of our nation.

Thank you, Mr. President.