Recto to gov’t: Beef up tax collection on Chinese workers

MANILA, Philippines—Senate President Pro Tempore Ralph Recto urged government to ramp up efforts in going after tens of thousands of Chinese workers in the country who have not been paying income taxes.

In a statement Friday, Recto stressed that there should be no “great wall” that protects imported Chinese labor from paying a tax on income earned in the Philippines.

“Baka kaya nagdagsaan ang mga dayuhang ito sa Pilipinas ay dahil masyado tayong maluwag. Nalulusutan ang BIR (Bureau of Internal Revenue), DOLE (Department of Labor and Employment) at Bureau of Immigration (BI),” Recto said.

The lawmaker said that the ultimatum given by the Finance department to both “Chinese employees and employers” to obey the tax laws of the country is the right way to raise revenue “because government must first collect taxes properly before raising them.”

He noted that government cannot be “strict on Filipinos when it comes to paying taxes while allowing foreign nationals a free pass.”

“Dehado na nga sa West Philippine Sea, pati ba naman sa singilan ng buwis e dehado pa rin ang Pilipinas,” Recto said.

Earlier, Finance Secretary Carlos Dominguez said an additional P2 billion monthly revenue will go to government coffers beginning this month as the BIR finally collects the taxes due from workers in the Philippine offshore gaming operators (Pogo) sector.

READ: Gov’t to collect P2-B a month starting July from mainly Chinese workers

Dominguez said government is set to collect about P2 billion a month from at least 100,000 Pogo workers, who are employed by online casino companies catering to mostly Chinese bettors.

However, Recto pointed out that “tax net must capture not only taxes evaded by Chinese workers in the country’s online gaming business, but in other industries as well, such as construction.” (Editor: Mike U. Frialde)