Digital Pinoys Backs Makabayan Bill to Repeal Philippines’ 12% Digital VAT
Digital advocacy group Digital Pinoys has endorsed House Bill 7844, filed on February 23, 2026 by the Makabayan Bloc (Reps. Sarah Jane Elago, Renee Louise Co, and Antonio Tinio), which seeks full repeal of Republic Act 12023 — the 12% VAT on digital services. Digital Pinoys argues the tax disproportionately burdens freelancers, content creators, students and MSMEs by adding costs on essential digital tools (streaming, cloud services, marketplaces, software). The group says removing the VAT would lower operating costs, improve competitiveness, and increase access to online learning. HB 7844 is pending with the House Committee on Ways and Means. The article notes R.A. 12023 took effect in 2024 and that the BIR’s 2025 implementing regulations included enforcement measures for non-compliant foreign platforms. Key keywords: digital VAT, HB 7844, Digital Pinoys, freelancers, MSMEs, Republic Act 12023.
Neutral
The bill and advocacy target tax policy, not crypto-specific regulation or an asset class; therefore market impact on cryptocurrencies is likely indirect and limited. Repealing the 12% digital VAT would reduce costs for digital service users (including crypto businesses that pay for cloud, SaaS, and marketplaces), which could modestly improve operational margins for some firms and lower friction for online economic activity. In the short term, traders should expect minimal direct price movement in major cryptocurrencies because the news affects domestic tax policy and consumer costs rather than liquidity, on-chain fundamentals, or exchange operations. In the medium to long term, lowering digital service costs could benefit Philippine crypto startups and web3 adoption by improving business economics and user access, which may modestly increase onshore demand for crypto services and on-ramp activity. Historical parallels: tax changes that reduce operational costs (e.g., lowered fintech fees or sandbox-friendly rules) often support ecosystem growth but do not immediately drive large market rallies. Key indicators to watch: committee progress on HB 7844, official BIR responses, corporate guidance from local exchanges/crypto firms about cost changes, and any broader fiscal shifts affecting investor sentiment.