Senators remind gov't of unpaid POGO taxes amid DTI plan to tax online barter

Some senators on Wednesday pointed out the unsettled tax obligations of Philippine Offshore Gaming Operators anew after the Department of Trade and Industry (DTI) warned of launching a crackdown on online barter-trading amid the COVID-19 pandemic.

Senate President Pro Tempore Ralph Recto said the new trend of bartering may be part of the coping mechanism of Filipinos after the health crisis caused adverse economic impact.

"People are bartering unused and surplus household items, not to monetize them, but for goods they need. Previously loved items are being rehomed," he said.

"To survive, our people are bartering clothes for calories. Dresses which the pandemic have made too small or too big are being bartered for food ingredients such as flour, as many of our people have turned to baking—not to get rich, but to get by," he added.

Recto said he thinks tax collectors should go after POGOs instead.

Senator Risa Hontiveros shared the same sentiment and said the unpaid taxes of offshore gaming firms could actually help the digitalization of the education sector amid the pandemic.

"Bakit na naman ang online bartering ang gustong i-tax? Baka nakalimutan natin, P50 billion ang utang na buwis ng mga POGO," she said on Twitter.

"This is enough to pay for laptops for all our public school teachers and over six million tablets that would account for 40.1% of public school students enrolled this year," she added.

Senator Joel Villanueva also said he cannot comprehend why the DTI would go after people who are just trying to make ends meet through barter.

"Importante na mag-adjust tayong lahat in this time of pandemic at tulungan natin ang bawat isa," he said.

On Tuesday, Trade Secretary Ramon Lopez said barter-trading has reached the internet as online selling boomed due to lockdowns.

He said barter-trading is illegal as it violates tax laws, and added that this practice is only allowed in "very limited" areas in Mindanao.

Later on, he clarified that barter can still be done personally as long as it is not in the course of a regular business.

“Personal transactions not in the course of trade and business, are not covered by registration requirements,” Lopez said.

Last month, the Bureau of Internal Revenue reminded online sellers to register their businesses in a bid to ensure tax compliance. —LDF, GMA News