PAGCOR against proposals to give POGOs tax advantages

PAGCOR chairman Andrea Domingo said certain groups are lobbying for tax advantages in special economic zones in the new bill that sets income and gaming taxes on online casinos.

The Philippines.- As Congress continues discussing the bill under which Philippine offshore gaming operators (POGO) would have to pay 5 per cent tax on their gross gaming revenue, Andrea Domingo, PAGCOR chairman, has disagreed with some proposed changes.

According to Domingo, some groups want to provide advantages to Philippine Offshore Gaming Operators (POGO).

Domingo stated: “Special means special. In government there shall be no such thing, all policies, regulations, laws should be uniformly applied.”

If the law is finally approved, POGOs must pay a 5 per cent tax on their gross gaming revenue. The bill would also make foreigners employed in online casinos and their service providers pay 25 per cent income tax. 

POGOs brought in US$149.4m in tax payments last year despite the impact of the Covid-19 pandemic and the resulting departure of many firms.

However, House Ways and Means Committee believes that under the new bill, the government could collect PHP13.4bn (US$266.6m) in its first year of implementation.

In June, presidential spokesman Harry Roque stated: “We hope that this measure would not only generate the much-needed revenues in the country but also place the industry under stricter government oversight.”