Netflix subscription prices in the Philippines are set to increase due to the newly implemented digital tax. The Digital Services Law, signed by President Ferdinand Marcos Jr., imposes a 12% tax on digital distribution services, leading to these price adjustments.
Netflix Subscription Price Increase
Netflix has notified its users that the new pricing will take effect on June 1. The updated monthly subscription costs are: Mobile (PHP 169), Basic (PHP 279), Standard (PHP 449), and Premium (PHP 619). The Standard and Premium plans offer an option to add an extra member slot for an additional PHP 169 per month.
What caused the price increase?
You can anticipate further price hikes on various digital services following the enforcement of the Value-Added Tax (VAT) on digital services provided by non-resident entities. The 12% VAT, mandated by the Value-Added Tax on Digital Services Law enacted last year, empowers the Bureau of Internal Revenue (BIR) to streamline tax collection from platforms offering digital media, music, video games, on-demand content, and online advertising.
Beyond Netflix’s recently announced price adjustments, other prominent platforms such as Spotify, Amazon, and Lazada are also subject to this new regulation. With a BIR deadline of June 1 for online registration, industry analysts predict a wave of similar price increase announcements from affected digital service providers soon
To know more about the VAT on Digital Services Law, click here, and for more local news, click here.
Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.
Currently he writes for Gadget Pilipinas and Grit.PH.
He is also a musician, foody, gamer, and PC enthusiast.
