Senate President Juan Miguel ‘’Migz’’ Zubiri on Friday, September 30 reiterated the Senate’s call for the Marcos administration to take a hard look at the country’s policy on the controversial Philippine Offshore Gaming Operators (POGO) operations.
‘’We have to undertake an in-depth review of the pros and cons of allowing POGOs to operate in our country in light of the recent spate of abduction cases and other established negative social costs,’’ Zubiri said.
There has been a spate of kidnapping with ransom cases, murders, extortion and prostitution that accompanied the multi-billion-peso POGO operations whose owners are based in China.
Zubiri was reacting to a Supreme Court decision declaring unconstitutional a provision in the Bayanihan 2 Law and several revenue circulars imposing a five percent franchise tax on gross bets or turnovers from gaming operations of POGOs.
Former Senate President Vicente C. Sotto III said ‘’that law was conceived and passed during the height of the pandemic. We gave due considerations to that and i wish the judiciary gave it the same concern.’’
Zubiri said that ‘’we respect the decision of the Supreme Court declaring the unconstitutionality of the POGO provision in the Bayanihan 2 Law as it finally puts to rest the applicable tax regime for offshore gaming activities.’’
‘’We note that the issue may have been rendered moot by the subsequent passage of the Republic Act No. 11590, otherwise known as “An Act Taxing Philippine Offshore Gaming Operations,” which provides for the detailed tax obligations of the offshore gaming industry.
In a 42-page decision, the High Tribunal declared Section 11(f) and (g) of the Bayanihan 2 Law unconstitutional, saying it is convinced these violates the “one subject, one title rule” of the Constitution.
“The imposition of new taxes, camouflaged as part of a long list of existing taxes, cannot be contemplated as an integral part of a temporary COVID-19 relief measure. Invariably, Section 11(f) and (g) of the Bayanihan 2 Law are unconstitutional, in so far as it imposes new taxes on POGO licensees,” the Court said.
Because of this, the Court also declared invalid RR No. 30-2020 and the RMC No. 64-2020 which were issued to implement Section of the Bayanihan Law for having no legal basis.