By Inquirer.Net
The Department of Finance (DOF) is studying the possible removal of the tax exemption on imported packages worth less than P10,000, known as the “de minimis” rule, as the government seeks to plug revenue losses and level the playing field for local manufacturers.
Finance Undersecretary Karlo Fermin Adriano told reporters that the exemption puts domestic producers at a disadvantage because locally purchased goods are generally subject to value-added tax (VAT), regardless of their price.
Under the de minimis rule, imported goods valued at P10,000 or less, excluding insurance and shipping costs and after deducting genuine discounts, are exempt from customs duties and taxes. Tobacco and alcohol products, however, remain subject to excise even if their value falls below the threshold.
The exemption has become increasingly relevant as online shopping platforms such as Lazada and Shopee make it easier for Filipino consumers to purchase low-priced goods directly from overseas sellers.
Adriano said the global trend was moving toward the removal of such exemptions, although he acknowledged that any changes would need to be carefully timed because the measure could prove unpopular among consumers.
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