Philippines senator files measure to repeal taxation of offshore gaming operators

Senator Joel Villanueva’s measure would repeal Republic Act 11590.

The Philippines.- Senator Joel Villanueva has introduced a proposal to repeal Republic Act 11590, which introduced the taxation of offshore gaming operators. The move is intended to comply with president Ferdinand Marcos Jr.’s decision to ban offshore gambling operations. The 2021 tax law amended the National Internal Revenue Code to impose additional taxes other than the franchise tax.

Villanueva’s Senate Bill No. 2752 seeks to permanently revoke offshore gaming licences, giving operators 30 days from implementation to halt their operations. Failure or refusal to cease operations would result in the responsible officers facing imprisonment of 12 to 20 years, a fine of PHP100m, or both. Foreign offenders would be deported after serving their sentence. The Bureau of Internal Revenue would have the authority to collect unpaid taxes

The proposal also outlines a Workers’ Transition Program for affected Filipino workers to be executed by the Department of Labor and Employment in coordination with the Technical Education and Skills Development Authority and other relevant agencies.

Villanueva said: “The negative impact of criminal activities and societal problems arising from POGO operations far outweigh the benefits that Filipinos receive from the taxes they pay.” He then added authorities must make sure that there is no more trace of offshore gaming operators in the Philippines.

Senate speaker Ferdinand Martin G. Romualdez had directed the House to develop and approve such legislation last week. The aim is to implement the measure by December. Romualdez also ordered the continuation of the congressional investigation into criminal syndicates associated with gaming.

PAGCOR denies ordering immediate shutdown of offshore gaming operators

The Philippine Amusement and Gaming Corporation (PAGCOR) has issued a statement saying that a memo that ordered local government units (LGUs) to terminate the operations of offshore gaming operators by August is fake. Attorney Jessa Mariz Fernandez, head of PAGCOR’s offshore gaming licensing department, said the memo dated July 26 was a manipulated version of an earlier memorandum issued on July 23, the day after a ban was announced. 

She said the president’s directive allows operations to continue until the end of the year and that the disinformation was an attempt “to create chaos and confusion.”