The chairman of the Philippines’ House Ways and Means Committee says the signing into law of a bill imposing certain taxes on Philippine Offshore Gaming Operators (POGOs) will help the industry recover by providing much-needed clarity.
Rep. Joey Salceda’s comments, reported by state-run Philippine News Agency, come after President Rodrigo Duterte last week enacted Republic Act 11590, which will see licensed POGOs pay a gaming tax of 5% on gross gaming revenues and POGO workers earning Php600,000 (US$11,900) or more a 25% withholding tax. A minimum monthly withholding tax of Php12,500 (US$250) will be applied to all POGO workers to prevent salaries being wrongly declared, and all workers must have a tax identification number.
Salceda said the POGO industry has been “wracked by uncertainty” in recent months with the Supreme Court having previously placed a Temporary Restraining Order on the tax bill, but could now resume operations with greater clarity around their obligations.
“President Duterte was very clear: He will only allow gaming if they pay the right taxes. This will make sure they do,” Salceda said.
“As long as they pay the right taxes and comply with all our laws, they will be able to operate.”
The POGO industry has been hit hard by COVID-19, with the number of licensees falling from 60 to 33 and accredited service providers under their watch from 300 to 167 since the start of the pandemic.
Salceda said he hoped these numbers would now increase and pointed to estimates that the law would generate Php15.73 billion (US$311 million) in “total public resources” in its first full year and Php144.54 billion (US$2.86 billion) over the next five years.
Presidential spokesman Harry Roque said last week that 60% of revenues collected via the new POGO tax law will be allocated for implementation of the Universal Health Care Act, 20% for the enhancement of health facilities and 20% for the attainment of Sustainable Development Goals by the National Economic and Development Authority.
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