MANILA – Senator Christopher Lawrence "Bong" Go on Friday called on the Department of Trade and Industry (DTI) to push for “alternative” modes and platforms that would allow persons to enter into barter activities for personal purposes.
Go made the call as he acknowledged that many Filipinos have resorted to barter system to exchange personal items for food and other essentials to enable them to cope with the coronavirus disease 2019 (Covid-19) crisis.
"Hindi po illegal ang barter kapag ito ay personal transactions, ayon sa DTI (Barter trade is not illegal if it's done for personal transactions, according to the DTI). I am also encouraging the government to promote alternative modes of personal transactions to ease the burden of our fellow Filipinos as long as it is legal and beneficial to the people," he said.
On Tuesday, Trade Secretary Ramon Lopez said online barter trades are illegal as these violate tax laws.
Lopez drew flak after he made the remarks, prompting him to issue a clarification that online barter transactions are allowed so long as these are done for personal purposes and not for business.
He said local barter trade done in the course of business is subject to regulations and tax.
Go said there should be clear guidelines on barter transactions.
"Gawin po nating klaro sa ating mga mamamayan ang guidelines para di po sila malito at magkamali. Magbayanihan po tayong lahat at suportahan ang mga alternatibong paraan ng transaksyon na makakagaan sa pasakit na dulot ng krisis sa taumbayan (Let‘s come up with clear guidelines so people won’t be confused and won’t commit mistakes. Let‘s look for alternative modes of transactions to ease the public’s plight amid the crisis),” he said.
Go noted that the Covid-19 crisis has forced some Filipinos to turn to social media to conduct barter trading, one of the world's oldest forms of trade conducted by exchanging goods and services without money involved.
He said the trade of used gadgets for food, produce, or school supplies fall under “personal transactions”, which are considered “legal and exempted from tax” so long as they are not conducted as business.
Barter trade is recognized under the Civil Code of the Philippines.
By law, any kind of business transaction, whether held online or not, must be registered and is subject to taxes.
In the case of barter, when done as a form of business, value-added taxes are charged to businesses and individuals engaging in such practice. Barters with yearly gross sales of PHP3 million, however, are exempted from paying value-added tax.
Go said he supports various alternative forms of personal transactions or product exchange, so long as existing laws are observed.
For those who are conducting transactions in the course of business, they have to make sure regulations are followed in accordance with the law, he said.
"Wala kaming problema sa businesses basta legal. Susuportahan ko po iyan, maliit man o malaki. Ang importante ay makakatulong ito sa tao at nasusunod ang batas (We have no problem with any business so long as it is done legally. I will support it, be it small or big. What’s important is it can help people and it complies with the law)," Go said. (PNA)
