The Philippine Bureau of Internal Revenue (BIR) brought in P7.18 billion (US$150 million) from Philippine Offshore Gaming Operators (POGOs) in 2020, despite the suspension of operations due to Covid-19 lockdowns, as well as the decision from some POGOs to exit the market.
According to the Philippine Star, the BIR said collections were up substantially from only P2.36 billion ($48 million) in 2018. Year-on-year, tax payments from POGOs increased by 11.71 percent from about P6.43 billion in 2019.
The Philippine Amusement and Gaming Corp. (PAGCOR) says there are now only 51 POGOs that are licensed by the regulator, down from 60 before the pandemic. Of those, only 34 have been allowed to resume operations on a limited basis as of January 5. In addition, there are 131 local gaming agents and service providers now permitted to reopen.
In related news, per CNN Philippines, the House of Representatives is considering legislation that would tax people engaged in offshore gaming operations. House Committee on Ways and Means Chairman Rep. Joey Sarte Salceda sponsored the bill, saying it would bring additional revenues to the cash-strapped government.
“The proposed new version will raise P144.54 billion ($3 billion) in total public resource inflows, yielding P31.0 billion pesos more,” he said. “New revenues come primarily from classifying service providers as regular corporations, and including their alien employees in the presumed minimum taxable income system, and allowing PAGCOR and special economic zones to levy regulatory fees of up to 2 percent,” he said.
