A bill to impose tax on POGO will be heard next week

Representative Joey Salceda proposed a measure to collect 5 percent from POGO revenues for the government.

Philippines.- Representative Joey Salceda proposed a measure to impose a 5 percent franchise tax on gross winnings of POGOs (Philippines Offshore Gambling Operators). It will be delivered to the plenary next week.

Salceda informed local media that the tax has been made to raise as much as P60 billion for the government. “Essentially, Pagcor (Philippine Amusement and Gaming Corporation) should collect the five percent from the POGOs and remit it to the BIR. They are paying the income tax, especially the service providers. But nobody pays the five percent”, said the representative, quoted in the Manila Bulletin. 

Salceda is pushing the bill ahead despite a legal opinion from the Office of the Solicitor General that the POGOs cannot be taxed, citing a “source of income” provision in the tax code.

The government has been pushing to close irregularities in POGO operations such as illegal workers and is seeking to collect the correct level of taxes.