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BIR figures show that POGO Tax Law works, rakes in gov't revenues--House leader
BIR figures show that POGO Tax Law works, rakes in gov't revenues--House leader
Albay 2nd district Rep. Joey Salceda has justified Republic Act (RA) No. 11590 or the POGO Tax Law by saying that it has led to increased revenues for government, contrary to earlier statements made by his fellow lawmakers.
To prove his point, the economist-solon cited numbers from the Bureau of Internal Revenue (BIR).
“From January to October 2021, prior to the implementation of RA 11590, we collected only P300 million per month in taxes from POGO. After the implementation, it jumped to P410 million monthly for the rest of 2021. By January 2022, it was up to P540 million for the month," he said.
"So, that closes any question on whether the tax law worked. It worked," stressed the House Committee on Ways and Means chairman, who was the principal author of the law.
POGO stands for Philippine Offshore Gaming Operator.
The Supreme Court (SC) recently affirmed the validity of the POGO Tax Law, which imposed taxes and other tax administration provisions on offshore gaming licensees, their employees, and their service providers.
Salceda also enumerated provisions where the law is stricter on POGOs than on any other sector.
“Allow me to reiterate this: RA 11590, which the Supreme Court has now affirmed, is the most brutal tax law, in terms of tax administration, in the country’s Tax Code. It presumes income for employees – so there is no escaping tax," he said.
“It requires independent audits of operations (not just accounts), which is not required of any other sector in the economy. It mandates 'free and efficient exchange of information' between enforcement agencies, including the Bureau of Immigration (BI), the Department of Labor and Employment (DOLE), the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC), the Philippine Amusement and Gaming Corporation (Pagcor), and any special economic zone authority. So, we can enforce better and outside of agency silos," the Bicolano noted.
“Mere non-payment of taxes, even without malice, blacklists the POGO employee from employment in the Philippines. It also requires offshore licensees to employ a 'resident agent for the mere purpose of receiving summons, notices and other legal processes'. We don’t do that for any other type of corporation,” Salceda said.
“In other words, if you are a legal POGO operator, there is no escape from regulation or taxes," he further said.