A government that just wants to keep imposing taxes?
With GCs (group chats) emerging in social networking sites (e.g. Facebook) for the bartering of goods of members particularly during the Covid-19 pandemic, government authorities will reportedly be cracking down on “modern-day barter trade”, with the Department of Trade and Industry (DTI) saying that it is illegal since transactions are not subject to taxes. The government is, thereby, encouraging online sellers to register with DTI and with the Bureau of Internal Revenue (BIR).
This was stated during the July 14 Laging Handa briefing by DTI Sec. Ramon Lopez, who – nonetheless – clarified that only online business barter transactions are prohibited by law while personal transactions are allowed.
For Lopez, it’s “very unusual” to hear urban communities resorting to the decades-old form of commerce to acquire goods. But this scheme is actually allowed in “limited” places in Mindanao, particularly Sulu and Tawi-Tawi, following the Executive Order 64 signed by Pres. Rodrigo Duterte in 2018.
“Sa ibang lugar, hindi po allowed ‘yung barter trade. Kailangan regular transactions tayo diyan at dapat may tax na binabayaran (In other areas, barter trade is not allowed. People must conduct regular transactions and pay the corresponding taxes),” Lopez.
Surprise, surprise, though: It remains unclear how the government can tax such deals, though Lopez said: “Ipapahanap natin ‘yun dahil ilegal po ‘yung activity (We will track them down because their activity is illegal),” with a composite team made up of DTI and the Philippine National Police to be deployed.
Existing rules of the BIR state that value-added taxes MAY BE IMPOSED (Emphasis ours – Ed) on consumption via the “sale, barter, exchange or lease” of goods and services.
