Retailers call for removal of tax exemptions on online imports

MANILA — Local retailers are intensifying calls for the government to abolish tax exemptions on international online purchases, contending that the existing e-commerce framework undermines fair competition in the domestic market. Bobby Claudio, chairman of the Philippine Retailers Association, made the appeal on Wednesday, urging policymakers to prioritize eliminating import tax thresholds rather than simply adjusting levies on luxury goods. The retail sector has long complained that online shoppers can purchase imported items below certain thresholds without paying taxes, creating what association leaders describe as an inherently unequal competitive environment. Traditional retailers, by contrast, must collect and remit taxes on all domestic sales, adding to their operating costs. Claudio's remarks reflect growing frustration among brick-and-mortar merchants who argue that without structural reform to the e-commerce tax regime, local businesses will continue losing market share to international online platforms. The Philippine Retailers Association contends that removing preferential tax treatment for online imports would create a more balanced marketplace and encourage consumers to support domestic commerce.