Philippines make Netflix, HBO streaming expensive with 12% value-added tax

Content mongers in the Philippines will have to pay more money to continue their subscriptions on Netflix and HBO after President Ferdinand Marcos Jr. signed a law imposing a 12 per cent value-added tax on the streaming services.

The move is one of the first measures implemented by President Marcos to generate revenue in the country. Apart from Netflix and HBO, the law will also cover online search engines, media, advertising platforms and e-shopping websites.

“If you are reaping the rewards of a fruitful digital economy here, it is only right that you contribute also to its growth,” the president said.

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How will taxing streaming platforms help?

This law could support the development of local streaming platforms as global companies like Netflix and regional provider Viu aim to grow their presence in the Philippines, which has a population exceeding 110 million.

With the introduction of VAT on global streaming services, the Philippines is expecting to generate $307 million in just the first year of implementation, according to a report by Daily Inquirer.

The Department of Finance previously projected that this measure would generate approximately 84 billion pesos in revenue from this year until 2028.

Five per cent of the money generated through this will be allocated for the development of the creative industry in the Philippines.

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