Press Release
October 18, 2022

Licensed POGOs remiss in paying correct taxes—Gatchalian

Philippine Overseas Gaming Operators (POGOs) in the country have under declared tax payments to the government as shown by discrepancies between gross gaming revenues they submitted to the Bureau of Internal Revenue (BIR) and Philippine Amusement and Gaming Corporation (PAGCOR), Senator Win Gatchalian said.

According to him, the government could have collected more taxes and fees from legitimate POGOs had they been more honest in their transactions with the BIR and PAGCOR.

"It's regrettable that even legitimate POGOS are remiss in the payment of correct taxes. This is exactly the reason a tax regime for POGOs was put in place which is to reduce uncollected taxes due the government. It is lamentable that even licensed POGOs continue to disregard accurate payment of taxes," Gatchalian said.

He revealed that his research shows estimated tax leakages of P1.9 billion due to the discrepancy of gross gaming revenue as reported by the BIR and PAGCOR from POGOs from January to August this year.

He said indicative gross gaming revenue from January to August this year, based on 5% gaming tax payments made to the BIR by POGO operators, totaled P28.36 billion. However, the 2% regulatory fee payments to PAGCOR show indicative gross gaming revenue for the same period at P66.67 billion. Furthermore, PAGCOR's account receivables from POGOs over the same period were estimated at P2.3 billion.

"Research shows that we are not realizing the full benefits of allowing POGO operations in the country. It's high time we consider developing other industries that are sustainable, high-yielding, and long-term businesses," he said.

Gatchalian emphasized that foregone revenues from POGO operators could have been used to enhance the country's healthcare system as provided by law. Such foregone revenues are particularly relevant as the country continues to battle the COVID-19 pandemic, he said.

He pointed out that under Republic Act 11590, or the Act Taxing POGOs, 60% of the total revenues collected from the gaming tax on offshore gaming licensees shall be allocated in the following manner: 60% for the implementation of the Universal Health Care Act, 20% for the Health Facilities Enhancement Program (HFEP), and another 20% for the attainment of the Sustainable Development Goals (SDG).


Lisensyadong POGO pabaya sa pagbabayad ng tamang buwis—Gatchalian

Maging ang mga lisensyadong Philippine Overseas Gaming Operators (POGOs) sa bansa ay nag-underdeclare ng kanilang bayaring buwis sa gobyerno base sa pagkakaiba ng gross gaming revenues na kanilang isinumite sa Bureau of Internal Revenue (BIR) at Philippine Amusement and Gaming Corporation (PAGCOR), ayon kay Senador Win Gatchalian.

Sabi ng senador, mas mataas na buwis sana ang nakolekta ng gobyerno mula sa mga lehitimong POGO kung naging mas tapat sila sa kanilang mga transaksyon sa BIR at PAGCOR.

"Nakakapanghinayang na kahit ang mga lehitimong POGO ay naging pabaya sa pagbabayad ng tamang buwis. Naglagay na nga tayo ng isang tax regime para sa mga POGO upang mabawasan ang mga hindi nakolektang buwis na dapat bayaran sa gobyerno. Nakakalungkot na kahit ang mga lisensyadong POGO ay patuloy na binabalewala ang tamang pagbabayad ng buwis," giit ni Gatchalian.

Base sa kanyang pag-aaral, may tinatayang tax leakage na umaabot sa P1.9 bilyon dahil sa pagkakaiba ng gross gaming revenue na iniulat ng BIR at PAGCOR mula sa mga POGO mula Enero hanggang Agosto ngayong taon.

Aniya, ang indicative gross gaming revenue mula Enero hanggang Agosto ngayong taon, batay sa 5% gaming tax na ibinayad sa BIR ng POGO operators, ay umabot sa P28.36 bilyon. Pero umabot sa P66.67 bilyon ang gross gaming revenue mula sa binayarang 2% na regulatory fee sa PAGCOR sa parehong panahon. Higit pa rito, ang mga account receivable ng PAGCOR mula sa mga POGO ay tinatayang nasa P2.3 bilyon mula Enero hanggang Agosto ng taon.

"Ipinapakita ng ating pananaliksik na hindi natin nakakamit ang benepisyo ng pagpasok ng mga POGO operators sa bansa. Panahon na para isaalang-alang natin ang pagbuo ng iba pang mga industriya na sustainable, high-yielding, at pangmatagalang negosyo," aniya.

Binigyang-diin ni Gatchalian na ang mga foregone revenues mula sa POGO operators ay maaaring nagamit sana para mapahusay ang healthcare system ng bansa ayon sa itinatadhana ng batas. Ang mga nasabing foregone revenues ay partikular na importante dahil patuloy na nakikipaglaban ang bansa sa COVID-19 pandemic, aniya.

Sinabi pa ng senador na sa ilalim ng Republic Act 11590, o ang Act Taxing POGOs, 60% ng kabuuang kita na nakolekta mula sa gaming tax sa offshore gaming licensees ay dapat ilaan sa sumusunod na paraan: 60% para sa pagpapatupad ng Universal Health Care Act, 20% para sa Health Facilities Enhancement Program (HFEP), at isa pang 20% para sa pagkamit ng Sustainable Development Goals (SDG).

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