New digital tax effect: Netflix to roll out higher fees starting June 1, starting at PHP 169 per month

Other streaming platforms are also affected.

Netflix logo and PBBM photo

Higher fees await Netflix subscribers in the Philippines

Netflix is set to implement price hikes across all its subscription plans starting June 1. 

Specifically, the Mobile plan will soon be priced at PHP 169/month from PHP 149/month.

For the Basic plan, the price will increase to PHP 279/month from PHP 249/month.

Prices of Standard and Premium plans, meanwhile, will both jump to PHP 449/month from PHP 399/month, and PHP 619/month from PHP 549/month, respectively.

There are no changes in the features subscribers can access depending on their plan.

New Netflix rates in the Philippines

• Mobile - PHP 169 per month (from PHP 149) - HD 720p/1 user at a time/ Download on 1 device at a time
• Basic - PHP 279 per month (from PHP 249) - Up to Full HD 1080p/1 user at a time/Download up to 2 devices at a time
• Standard - PHP 449 per month (from PHP 399) - Up to Ultra HD 4K + HDR/Up to 2 users at a time/Netflix Spatial Audio/Download to up to 6 devices at a time/Add 1 extra member slot for PHP 169 per month
• Premium - PHP 619 per month (from PHP 549) - Up to Ultra HD 4K + HDR/Up to 4 users at a time/Netflix Spatial Audio/Download to up to 6 devices at a time/Add 1 extra member slot for PHP 169 per month

Netflix is compatible with tablets, phones, laptops, and TVs.

This price increase follows the implementation of a 12 percent Value-Added Tax (VAT) on digital services provided by foreigners stated under the Value-Added Tax on Digital Services Law signed last year.

The law "strengthens and streamlines the authority of the Bureau of Internal Revenue (BIR) to collect VAT on digital services, including digital media, digital music, digital video games, video-on-demand, and digital ads."

Aside from Netflix, other platforms affected by this law are Spotify, Amazon, and Lazada, among other digital service providers.

We expect more price increase announcements in the coming weeks since the affected companies were told to complete their online registration with the BIR no later than June 1.

What do you think, guys?

Via: PCO