State of the Gadget Union by The Verge

Buckle up, buying many gadgets and appliances may soon be taxed

In Business, Laptops, Phones, Tablets, Wearables by Alora Uy Guerrero0 Comments

THEY are not stopping with the vanity tax. After a controversial Philippine bill proposing to tax beauty and cosmetic products was filed January 11, here comes another plan that may end up being contentious, too.

PBA Party-list Rep. Mark Aeron Sambar is eyeing to impose a 5-percent tax on excessive purchases of gadgets and appliances like smartphones and television sets, according to a report by GMA-7 news anchor and producer Tina Panganiban-Perez.

Sambar said that the Electronics Excess Tax will “prevent people from buying too much of a certain product and at the same time generate income for the government.”

News anchor and producer Tina Panganiban-Perez’s report on GMA-7’s ’24 Oras’

He’s in the process of fleshing out the details of the said measure to determine which products are going to be taxed, what is considered excessive, which devices are exempted, and how to monitor purchases — the very questions that we want answered after reading the report. We’re trying to bite our tongue and not write a kilometer-long response to this proposal until all details have come in — even though off the top of our head, we think this is a stupid, stupid move. Yes, considering we already have other forms of taxes imposed on electronic products.

Which products are going to be taxed? What is considered excessive? Which devices are exempted? And how should the government monitor purchases? We’re trying to bite our tongue until all details have come in.

Sambar added that monitoring could be done through tax identification numbers. This probably means showing your TIN to the cashier before paying for the items you want to buy. Part of the money the government will collect, he said, will be allocated for an “electronic waste disposal and management” program for old gadgets and appliances.

So what’s your initial take on this plan? Sound off in the comments below.

Image via The Verge

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Alora Uy Guerrero

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Editor-in-chief: Alora Uy Guerrero has over 15 years of experience as an editor for print and digital publications such as Yahoo. She took a year off from journalism to manage OPPO’s digital-marketing campaigns. When not busy freelancing as an editorial and social-media consultant, she’s working on Revü, a passion project — or probably traveling or obsessing over her furbabies and her favorite bands, movies, TV shows, and basketball teams.