Bayanihan 2 seen to increase tax collections from POGOs —Drilon

An increase in tax collections from Philippine Offshore Gaming Operators (POGOs) is expected once the Bayanihan to Recover as One Act or Bayanihan 2 becomes law, Senate Minority Leader Franklin Drilon said Thursday.

In an online interview, Drilon told reporters that he introduced a provision specifically stating how franchise taxes of POGOs shall be computed. He said revenues from this industry will be used to help beef up the country's COVID-19 pandemic response.

"Tinaasan namin ang computation ng buwis para sa POGO.... Ang computation [ngayon], bet minus winnings on the part of franchise tax na ibinabayad kung anuman ang taya, gross bet minus payments for winnings—ang balance noon 'yun ang pinapatawan ng 5% [franchise tax]," Drilon said.

"Ang ginawa natin, ginawa kong gross bet. Hindi na puwedeng ibawas 'yung winnings dahilan sa diyan nagkakadayaan," he added.

Since dollars are being used as the currency for POGO transactions, Drilon said he also specified that the official exchange rate shall be used in the conversion for payment of taxes.

"Pag nahuli silang nandaya, sasarahan. May authority ang BIR [Bureau of Internal Revenue] to close the POGO," he added.

Under Bayanihan 2, the tax collections from POGOs will be used to fund the government's COVID-19 response efforts, according to the Senate leader.

"Pagkatapos ng event ng pandemic, ito'y pupunta sa sa general fund," he added.

The Bayanihan 2 bill comes with a P165 billion budget which shall be appropriated to various industries affected by the COVID-19 situation.

Senate Committee on Finance chair Sonny Angara said P140 billion is available as vouched for by the Department of Finance while P25 billion is a standby authority which can be used once additional government revenues become available.

Mixed fund sources will be tapped for the implementation of the bill.

"Aside from tax collections, revenues, or income obtained by any government agencies and GOCCs, tapos mayroong savings from foreign loans," Angara said.

"Just like the regular budget, umuutang din tayo. One-fourth o one-third umuutang din tayo. Ganoon din po in this case," he added.

The bill, already finalized by both houses of Congress, is expected to be ratified by the Senate within the day. — BM, GMA News