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Philippines President Ferdinand Marcos Jr. favored taxing digital services to achieve 8% growth and aimed to employ solar and wind power as renewable energy sources.
Marcos Seeks for Economic Growth and Renewable Energy Source
To achieve an 8% growth rate throughout his tenure, Philippine President Ferdinand Marcos Jr. advocated for the taxation of digital services, promised to maintain significant infrastructure expenditure, and swore never to impose another lockdown.
Marcos also cited increased demand as justification for the need for the Philippines to construct more power facilities and review its nuclear energy policy. It must use renewable energy sources like solar and wind power and consider offering incentives for gas development.
His first plan for earning money is to tax digital services, which, if adopted by Congress, would bring in $208 million in 2023. He said that raising tax revenues and simplifying tax processes would decrease debt to 60% of GDP by 2025 and the budget deficit to 3% by 2028.
Additionally, his economic team reaffirmed forecasts earlier this month, stating that the nation anticipates GDP growth of 6.5 % to 7.5% this year and up to 8 percent by the end of his tenure in 2028. The Philippines last had more than 8% growth under the late dictatorship of the president's father and namesake, Ferdinand Marcos Sr., in 1976.
To end lockdowns, he pledged to improve the nation's healthcare capacity, especially outside Manila, and to support nurses and doctors. Marcos said economic zones would welcome health care companies to attract additional investment. At the same time, the trade department is talking with generic drugmakers to decrease prescription pricing.
Marcos added that the government would also explore the "precarious" water supply issue and propose commercial partnerships. Marcos vowed to keep spending at 5% of GDP and increase his predecessor's infrastructure programs to boost economic growth and employment. "We must keep going and build better buildings."
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Canada has Imposed Indirect Taxes on Digital Service Providers. Here's a Few Information
Digital video, downloadable or streamed music, digital games, and electronically published material have proliferated in recent years. As digital items may now be supplied anywhere, many European enterprises are expanding globally. North America's second-largest digital media market is predicted to reach $6.48 billion in 2022.
EU enterprises that offer digital services to Canadians may have tax registration and collection duties. Federal and provincial taxes make Canada's tax structure more complicated than the EU's.
The federal government and every province that levies a separate provincial state tax (PST) have passed specific legislation requiring international companies offering digital services to pay taxes. These laws' respective purviews vary widely.
From July 1, 2021, foreign vendors delivering services and intangibles to Canadian customers must register for GST/HST if their 12-month sales to unregistered Canadian buyers reach or are likely to exceed $23,287. Foreign vendors are not obligated to charge GST/HST to Canadian clients who are registered and have submitted their numbers.
The federal law covers all taxable intangible property or services. Nexus law covers video or music streaming, mobile applications, e-books, online video games, and conventional services like legal and accountancy.
The customer's location will determine the applicable tax rate:
- 5 percent (GST) in Saskatchewan, Manitoba, the Northwest Territories, Nunavut, and the Yukon;
- 13 percent in Ontario (HST);
- In New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, the sales tax rate is 15% (HST).
The Canada Revenue Agency offers comprehensive instructions on pinpointing the customer's location while considering numerous signs.
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