{"id":777003494,"date":"2023-03-20T14:17:58","date_gmt":"2023-03-20T17:17:58","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777003494"},"modified":"2026-04-22T23:36:30","modified_gmt":"2026-04-23T02:36:30","slug":"bir-opposes-pagcor-proposal-to-change-franchise-tax-distribution","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/bir-opposes-pagcor-proposal-to-change-franchise-tax-distribution","title":{"rendered":"BIR opposes PAGCOR proposal to change franchise tax distribution"},"content":{"rendered":"\n

PAGCOR has proposed that 3 per cent of the franchise tax go to the national government and 2 per cent to local government units.<\/p>\n\n\n\n\n\n\n\n

The Philippines.- Bureau of Internal Revenue (BIR) representative Ralbert Tibayan<\/strong> spoke against the Philippine Amusement and Gaming Corp.’s (PAGCOR) proposal to redistribute the 5 per cent franchise tax<\/strong> it pays from its operation and licensing of casinos. He spoke at a hearing by the House of Representatives Committee on Games and Amusements.<\/p>\n\n\n\n

PAGCOR has suggested redistributing the tax to give 3 per cent to the national government through the BIR and 2 per cent to local government units (LGUs) hosting PAGCOR casinos. Currently, the entire 5 per cent franchise tax goes to the BIR while host cities receive less than one per cent of revenue.<\/p>\n\n\n\n

Last year, the BIR received PHP2.75bn from the franchise tax while host cities only received PHP451.72m, equivalent to 0.76 per cent of revenue. If the franchise tax is reallocated, host LGUs will receive PHP1.1bn, and the BIR’s revenue will decrease to PHP1.65bn based on the projected 2022 franchise tax of 5 per cent.<\/p>\n\n\n\n

PAGCOR president and COO Juanito Sanosa <\/strong>said: \u201cWe will respect whatever the body will pass but we just want to present that many of those presently distributed by PAGCOR will be hit.”<\/p>\n\n\n\n

PAGCOR posts income of US$1.08bn for 2022<\/h2>\n\n\n\n

The regulator and operator reported income of PHP58.96bn (US$1.08bn) for the year 2022. The figure was up 66.2 per cent when compared to the previous year<\/a>. It reported PHP55.05bn (US$1bn) in income from gaming operations<\/strong>, up 68.7 per cent yearly. Meanwhile, its expenses increased by 61.4 per cent year-on-year to PHP22.59bn. PAGCOR had to withdraw nearly PHP31.65bn in subsidies, financial aid and other contributions to the government.<\/p>\n\n\n\n

Net revenue was nearly PHP4.45bn in 2022, compared to PHP203.57m in 2021. The 2021 results were affected by multiple countermeasures associated with the Covid-19 pandemic. However, 2022 performance was still only half of the PHP9.01bn reported in 2019 before the pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":"

PAGCOR has proposed that 3 per cent of the franchise tax go to the national government and 2 per cent to local government units.<\/p>\n","protected":false},"author":176,"featured_media":34644,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"PAGCOR has proposed reallocating its 5% franchise tax, suggesting 3% go to the national government (BIR) and 2% to local government units (LGUs), a significant shift from the current 5% entirely to BIR. This proposal comes as PAGCOR reported a robust 66.2% increase in income to US$1.08bn for 2022, though net revenue remains half of pre-pandemic levels. The Bureau of Internal Revenue has expressed opposition to the redistribution.","focusai_entities":"PAGCOR, Philippine Amusement and Gaming Corp., Bureau of Internal Revenue, BIR, House of Representatives Committee on Games and Amusements, Ralbert Tibayan, Juanito Sanosa","focusai_location":"Philippines","focusai_target_profile":"ceo_executive (0.9), regulator (1.0), compliance_legal (0.9), operator_casino (0.85), investor_analyst (0.95), supplier_vendor (0.7), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Tax Reallocation Impact","query":"What are the projected long-term financial implications for the Bureau of Internal Revenue and host Local Government Units if PAGCOR's proposed 5% franchise tax redistribution is enacted, considering potential shifts in gaming revenue growth?"},{"label":"Regulatory Precedent","query":"How might PAGCOR's proposal for tax reallocation influence future regulatory discussions regarding revenue distribution models for other licensed gaming operators within the Philippines or serve as a precedent for other jurisdictions?"}],"footnotes":""},"categories":[156,16333],"tags":[405],"class_list":["post-777003494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation-news","category-south-east-asia-news","tag-pagcor"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777003494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777003494"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777003494\/revisions"}],"predecessor-version":[{"id":777003515,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777003494\/revisions\/777003515"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/34644"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777003494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777003494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777003494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}