Calls for Better Protection of Freelancers
TRABAHO Partylist is urging lawmakers to strengthen protections, incentives, and support systems for the growing freelance workforce in the Philippines. This comes amid the rollout of Republic Act No. 12023, or the Value-Added Tax on Digital Services Law, which threatens to burden online gig workers.
According to TRABAHO’s spokesperson, freelancers play a vital role in the economy, especially in digital and remote work sectors. “Freelancers are thriving despite limited formal support. Instead of taxing platforms that enable their livelihood, we must craft policies that empower and protect them,” the spokesperson said.
Impact of Digital Services Tax on Freelancers
The new law imposes a VAT on digital services such as freelance marketplaces, payment platforms, and productivity tools. Many freelancers depend on these services daily. Thus, there is fear that the tax will increase fees or restrict access, raising operational costs.
TRABAHO warns this could push Filipino talents away from the digital gig economy. The partylist highlights the importance of nurturing this sector, which has grown to about 1.5 million registered freelancers contributing significantly to the economy.
Challenges Faced by Filipino Freelancers
Despite their growth, freelancers face job insecurity, lack of benefits, and vulnerability to exploitation. Many work without formal contracts, leading to delayed payments and weak protection against abuse, especially from foreign clients.
“We need to formalize and support freelancers,” the spokesperson emphasized. “This includes affordable internet access, tax incentives, protection from platform abuse, and inclusion in healthcare and pension programs.”
Voices from the Freelance Community
A freelance artist shared the struggles of lacking benefits and security. “Sometimes, I envy corporate workers with HMO and steady income. We don’t have those safety nets,” she said, highlighting the urgent need for reforms.
Proposals for Fair Taxation and Inclusion
TRABAHO plans to propose fair taxation schemes, mandatory government support, and the inclusion of freelancers in labor consultations. They call on lawmakers to weigh the broader effects of the digital tax and prioritize investments in digital labor infrastructure.
With the digital workforce rapidly expanding, the call for comprehensive support and protection becomes more urgent than ever.