MANILA, Philippines — Sen. Joel Villanueva has struck down as unfounded the over-taxation concerns on Philippine offshore gaming operations (POGOs), lamenting how poor regulation of this industry has contributed to mounting social concerns like rising property prices and increasing criminality and illegal activities.
“No amount of money can reverse the impact of social ills that this sector has brought on our shores,” the chair of the Senate committee on labor, employment, and human resources development said in a statement, Thursday.
The lawmaker also reiterated the need to impose taxes on the gaming industry, which he said has seen unhampered growth in the past three years.
“Halos tatlong taon po ang lumipas bago napapayag ng ating pamahalaan na magbayad ng tamang buwis ang mga POGO. Hindi na po natin mababalik ang nawalang pagkakataon para kumulekta ng buwis,” Villanueva pointed out.
(It took us almost three years before the government was able to tax POGOs properly. We cannot take back the time and income lost from that.)
READ: Villanueva: POGOs must pay taxes like any foreign business
The senator also stressed the minimal gains of the country from the POGO industry since it has “shown preference to hire foreigners… primarily because these offshore firms’ main clientele are mainland Chinese nationals.” The real estate sector has been recording brisk demand for office space and residential lease because of POGOs as well, he added.
“If the property boom is the only economic benefit we can cite attribute to POGOs, then it is only right that we should impose more taxes on it. It is not only making our workers worse off by making rent prices higher and office space more expensive, [but] it is also driving the cost of business operations higher as well, to the detriment of local entrepreneurs,” said the senator.
A proposed law clarifying POGO taxes, House Bill No. 5267, has been filed in the House and was recently approved at the committee level. The bill seeks to impose a 15 percent income tax on POGO workers and hike the 2 percent franchise tax on offshore gaming companies to 5 percent.
In an earlier hearing in the House, Philippine Amusement and Gaming Corporation Senior Manager for Policy Development Jessa Fernandez had warned that imposing higher taxes on POGOs may discourage gaming companies to operate here thus, hurting government revenues. But the National Economic and Development Authority has backed the proposal.
READ: Pagcor cautions House from imposing higher tax on POGOs | Neda backs Pogo tax to shore up gov’t revenues