Bayan Muna (BM) has voiced strong opposition to the new tax imposed by the Marcos regime on digital services, which it says will inevitably passed on to Filipino consumers. Ferdinand Marcos Jr the said law (Republic Act 12023), which imposes a 12% value-added tax (VAT) on foreign digital service providers yesterday, October 2.

“The imposition of a 12% digitax on digital goods and services is not the way forward,” according to Bayan Muna second nominee Atty. Carlos Zarate. The new law will cover not only services like Netflix and Spotify, but also services used by educational institutions like Canva and Zoom. Netflix’s basic subscription, for example, will increase by ₱29.88, from ₱249/month to ₱278.88. Canva Pro will increase from $12.99 to $14.55 per month or $119.99 to $134.39 per year. The regime estimates that this tax could generate ₱105 billion over the next five years.

Zarate said the Marcos administration should not impose taxes like VAT that will hit small consumers. Instead, he said the regime should prioritize imposing a wealth tax on the oligarchs and billionaires who overindulge in heaps of profit from the economy.

Marcos signed RA 12023 ten months after then-new Department of Finance secretary Ralph Recto promised that the regime would not impose new taxes while in office. Despite this, at least five additional tax proposals are currently lined up in Congress.

The youth derided Marcos for imposing taxes while himself not yet paying his family’s ₱203 billion estate tax.

“[Marcos’] audacity of imposing additional taxes on the public while unresolved tax issues remain at the highest levels of government is an insult to the Filipino people,” Anakbayan said.

While the taxes on the people are increasing which heavily affect the poor and the middle class, the taxes on the big corporations and the richest comprador bourgeoisie are decreasing.