Bill to ban POGOs gains support from Philippine business groups
Three groups have issued a joint statement giving their support to calls to ban POGOs.
The Philippines.- The bill to ban POGOs introduced by Senate majority leader Joel Villanueva in September continues to gain support. Three business associations, the Foundation for Economic Freedom (FEF), the Makati Business Club (MBC), and the Management Association of the Philippines (MAP) have released a joint statement in favour of a ban.
They say POGOs have a high social cost and damage the country’s reputation.
The statement reads: “The social and reputational costs of government sponsorship of operations that are globally frowned upon far outweigh any economic benefits. Conflicting mandates and the lure of corruption have rendered it and other involved government agencies incapable of effectively regulating POGOs.”
Benjamin Diokno, secretary of finance in The Philippines, has also suggested that the country should abolish POGOs. There have been suggestions that a ban would hurt the Philippines economically. Between January to August, POGOs generated PHP4.438bn (US$75m) in tax revenues.
However, the business groups said: “The total ban will only result in temporary economic stains, as opposed to the enduring socio-economic consequences and heavier disruption if we do not act now.”
NEDA: Banning POGOs could benefit the Philippines’ tourism sector
Sarah Lynne Ducanes, assistant secretary for the Policy and Planning Group at the National Economic and Development Authority (NEDA) told a Senate committee that a ban could eventually benefit the country’s tourism sector. She believes POGOs are affecting the Philippines’ reputation among potential investors.
According to preliminary NEDA estimates, POGOs generate a net cost to the country’s tourism industry, particularly Chinese tourism. Ducanes acknowledged that banning POGOs would result in some losses, such as office rental income. But she said a rebound in tourism could eventually offset the losses.
