A convenor of CLICK Partylist has expressed support for the regulation and concern for small startups that may struggle to comply with the new rules.

This comes following the Bureau of Internal Revenue’s (BIR) recent statement regarding the possible suspension of unregistered online businesses under Revenue Regulations 15-2024.

“The Internet Transaction Act of 2023, coupled with the BIR’s enforcement, aims to level the playing field between online and brick-and-mortar businesses, which is essential for consumer protection and trust in e-commerce. At the same time, it’s crucial for the government to offer concrete support to startups and small online businesses,” Atty. Nick Conti said.

Under the new regulations, online businesses that fail to register with the BIR could face suspension or closure. While the regulation seeks to ensure fair taxation across physical and digital platforms, there is growing concern that many unregistered online sellers may be driven out of business.

Conti stressed the need for a more inclusive approach, where the government actively helps startups transition into the formal economy.

“In other countries like Singapore and the United States, startups receive government assistance through grants, tax breaks, and legal guidance to encourage compliance. The Philippines should adopt a similar model to help our small businesses grow rather than penalizing them prematurely,” Conti said.