Only 10 out of 60 POGOs in PHL pay taxes —BIR

The Bureau of Internal Revenue (BIR) collects taxes from only 10 out of 60 registered Philippine Offshore Gaming Operations (POGO) operating in the country, according to a Tuesday report by Victoria Tulad on Quick Response Team.

During the hearing of the House Committee on Ways and Means, it was revealed that 50 of the POGOs are based in other countries though they have employees in the Philippines.

Committee chairperson Joey Salceda cited the Office of the Government Corporate Counsel's (OGCC) report that showed BIR's inability to tax POGOs.

"Sabi po ng OGCC na sila ay non-resident corporation and therefore 'yung operasyon nila ay non-taxable. So hindi natin nagagamit 'yung buwis," Salceda said.

Lawmakers said the government should instead consider halting POGO operations  if they could not be properly taxed.

"If we cannot tax it properly, Mr. Chair, we might as well scrap the whole thing. Why? Because it is not helping the government raise necessary revenues for that," Minority Leader Representative Bienvenido Abante, Jr. said.

"Sayang naman yung opportunity. It's really a lapse between the two agencies," AAMBIS-OWA Partylist Representative Sharon Garin said.

However, according to Salceda, both overseas-based and Philippine-based POGOs can be taxed. This was the goal of his House Bill 5267, which charges a 5 percent tax on their profit.

If approved, the government may acquire P45 billion in one year as the POGOs will also be charged with corporate income tax.

However, regulator Philippine Amusement and Gaming Corporation (PAGCOR) rejected the proposal for higher taxes.

"Due to the volatility of market there might be a risk that these operators might find jurisdiction which offers better taxes," PAGCOR's Jessa Fernandez said.

According to data from the PAGCOR and the Bureau of Immigration, there are 80,000 to 140,000 POGO employees in the country,  which are mostly Chinese nationals.

A lawmaker stressed that the income tax being paid by foreign workers should be the same as the tax being paid by Filipinos.

"Here, the proposal is to tax POGO employees 15% of their salaries. I’d like to ask the DOF why are we proposing a different tax rate compared to the Filipino employees?" Marikina Representative Stella Quimbo said.

"This would mean that those earning above P700,000 would end up paying lower taxes compared to Filipinos earning the same in different industries," she added. —Joahna Lei Casilao/LDF, GMA News