‘Wag na dumagdag sa krisis! Precious Castelo appeals to BIR: Don’t tax online sellers now

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Quezon City Rep. Precious Castelo is urging the Bureau of Internal Revenue (BIR) to defer the enforcement of its memorandum circular requiring online sellers to register their business and pay income and other taxes.

In House Resolution No. 994, Castelo said BIR should move the mandatory registration of online sellers after the COVID-19 pandemic has passed.

The lawmaker said that while e-commerce has boomed due to the pandemic, most of the sellers are small entrepreneurs who offer food and other supplies for a small markup.

“Many of these people are workers who lost their jobs due to quarantine restrictions. I think that they are not really making money. They are just trying to make both ends meet. There is thus strong opposition to the move of the BIR to get them registered and to tax them,” she said.

Castelo said she would be happy for online community sellers if they remain as entrepreneurs after the Covid-19 pandemic.

“Maybe, that would be the time the government could ask them to register and pay taxes,” she said.