Netflix Price Hike Hits Philippines: What You Need to Know


 Starting June 1, 2025, Netflix users in the Philippines will pay more for their subscriptions. A new 12% tax on digital services, called value-added tax or VAT, is the reason. This tax comes from a law signed in October 2024 by President Ferdinand Marcos Jr. It affects companies like Netflix, Amazon Prime Video, and Spotify. The goal is to make things fair between local and foreign businesses. But many Filipinos are worried about the extra cost.

The new law, Republic Act 12023, changes how taxes work for digital companies. It started on January 1, 2025, and covers streaming, online shopping, and gaming services. The government expects to collect about PHP 105 billion by 2029. Some of this money will help local artists and creators. The Philippines is following other countries like Australia and Japan with this tax. Before, local businesses paid VAT, but companies like Netflix didn’t.

Netflix shared the news about higher prices on May 6, 2025, through emails and app alerts. Starting June 1, the Mobile plan will cost PHP 169, up from PHP 149. The Basic plan will be PHP 279, up from PHP 249. The Standard plan jumps to PHP 449 from PHP 399. The Premium plan will cost PHP 619, up from PHP 549. Extra member slots will now be PHP 169 each, up from PHP 149. New users already pay these prices, but current subscribers will see the change after June 1.

Around 2.71 million Filipinos use Netflix. The Premium plan, with its sharp 4K quality and support for four users, has the biggest price jump at PHP 70 more per month. The Mobile plan, for one device in HD, only goes up by PHP 20. Many Filipinos are upset about the increase. Some shared their frustration on X, with one user angrily blaming the government for the new tax.

Tax experts say customers will feel the pinch because companies like Netflix pass the tax onto users. Mon Abrera, a tax consultant, thinks taxing company profits instead might have been better. This way, Filipinos wouldn’t face higher bills. Other services like Spotify, Amazon, and Steam are also raising prices because of the VAT. The government wants all these companies to register by June 1, 2025, so more price hikes might come.

The government says the tax helps local businesses and funds creative projects. But groups like the IBON Foundation say it hurts regular Filipinos, especially those with lower incomes. They suggest taxing wealth or income instead of services people use every day. As June 1 gets closer, many Filipinos are rethinking their budgets. Netflix says the price increase is only because of the tax, not new features or shows.

The success of this new tax depends on how well the government explains it and makes companies follow the rules. Netflix and others need to keep customers happy in a growing market where Disney+ is gaining fans. The Netflix price hike in the Philippines shows the government’s effort to update taxes for digital services. It aims to support local businesses, but many worry about the cost to everyday users. As more services adjust prices, the full impact of this tax is still unclear.

Source: www.rappler.com

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