MANILA – The Philippine Amusement and Gaming Corporation’s (PAGCOR) projection that more Philippine Offshore Gaming Operators (POGO) will be leaving the country amid tax issues is a “good news.”
Senate Minority Leader Franklin Drilon said yesterday that POGOs should settle their P50 billion unpaid taxes and that the Bureau of Internal Revenue (BIR) should immediately issue closure orders to delinquent firms in the said industry.
“That’s good news. Let them go. Hindi po natin kawalan ang POGOs. Huwag po natin silang habulin. PAGCOR should stop playing a lover to POGOs,” Drilon said in a statement.
“It should abandon any effort to [woo] them back. Our tax laws are clear: POGOs should pay franchise and withholding taxes,” the Ilonggo senator added.
The BIR previously said “legal issues” are hampering the collection of franchise taxes from POGOs as these firms assert that they should not be subjected to such because they are non-resident corporations.
Opposition senator Risa Hontiveros, for her part, has also urged the cancellation of POGO licenses as she said that they shall be subject to 5% franchise tax on Gross Gaming Receipts or a pre-determined minimum monthly revenue, whichever is higher, apart from income tax and withholding tax.
“Kanselahin na ang lisensiya kung hindi pa rin maka-comply sa pagbabayad ng buwis. PAGCOR should exercise its regulatory powers and come down hard on tax-evading POGOs. Dahil kung wala namang parusa, wala namang multa, bakit pa nga ba sila magbabayad?” Hontiveros said.
On Sunday, PAGCOR assistant vice president for offshore gaming licensing Jose Tria confirmed that two POGO firms left the Philippines and more are seen to exit amid tax issues with the government.
“There are other jurisdictions that have opened up offering better tax rates and friendlier environment,” Tria said. “Some [POGOs] also can no longer take the criticisms they get each day that make them feel unwelcome in our country.”/PN
