PAGCOR providers hit back at lawmakers: Think of economic impact of POGO exodus

The Accredited Service Providers of PAGCOR (ASPAP) on Tuesday urged lawmakers to "carefully consider" the economic impact of the looming exodus of Philippine Offshore Gaming Operations (POGO) providers.

ASPAP spokesperson Margarita Gutierrez said that the Philippine economy will suffer should POGO service providers (PSPs) exit the country.

"If this continues, we will lose a lot more than what these lawmakers want the public to believe," she said in an emailed statement.

The statement was released days after the Philippine Amusement and Gaming Corporation (PAGCOR) said at least two offshore gaming companies have already left the country and more are seen to follow suit.

Senators on Monday welcomed the development as "good news" and said that their exit would not be a loss to the Philippine economy.

"The economy will further suffer along with the government’s COVID-19 response programs as we will lose a significant revenue-generator. The property sector will take a hit and job losses from the industry will compound the unemployment problem," said Gutierrez.

"That is what we cannot comprehend. At a time when we need to come together to get out of the devastation brought by the pandemic, some lawmakers are bent on pushing our country and fellow Filipinos to further despair by driving away what is considered a source of 'free money' - but a fully legitimate industry," she added.

Gutierrez claimed that the POGOs are contributing P94.7 billion to the economy, an amount which, she said, could reach as high as P104 billion this year. She also said POGOs contributed P1.8 billion in regulatory fees in January to March of this year alone.

Just last week, the DOF said government revenues from POGOS should reach as much as P20 billion per year, but collections only reached P6 billion in 2019.

Earlier this month, the Bureau of Internal Revenue (BIR) said "legal issues" are hampering the collection of franchise taxes from POGOs, who claim they should not be subjected to such taxes as they are non-resident corporations.

"The government is taking out foreign loans to raise revenues while some quarters are driving away a legitimate and regulated industry proven to generate billions of pesos in taxes. Aren't we doomed with such a policy?" questioned Gutierrez.

"Although we laud the government's proactive approach as seen in the foreign loans being applied for, let us not discount the other sources of funds that are currently available, such as but not limited to the fees from the PSPs which are more than willing to comply and pay its dues to the government," she added.

To recall, the POGO industry was allowed to partially resume business in May amid the lockdown, provided that they settle their unpaid taxes with the Bureau of Internal Revenue (BIR) and follow strict COVID-19 protocols.

The DOF said it is already looking into claims, which Finance Secretary Calos Dominguez said are "probably true," that only two POGO firms have paid taxes.

The department in September 2019 already threatened to shut down POGOs with tax liabilities, with uncollected withholding income taxes then estimated at P21.62 billion. A number of POGOs have since been closed.

For its part, the ASPAP already said its members paid the required regulatory fees and the corporate and withholding taxes of their workers.

"We pay our obligations to the government and to say that PSPs are not a loss is akin to saying that the government does not need any revenue-generating sector," said Gutierrez. — BM, GMA News