DAVAO CITY – The local government of Davao has lifted the ban on cockfighting after almost three years but has imposed a higher amusement tax of 30%, a threefold increase from 10% previously imposed on cockpit operators, First District councilor Bernard Al-ag said.
Al-ag said that increasing the taxes on the operators was one of the conditions to allow derbies, blamed for the transmission of coronavirus disease (COVID-19) cases to some parts of Mindanao in 2020.
He said the local government has estimated to generate between P25 million and P30 million in annual revenues from P10 million under the old tax regime imposed on the cockpit operators.
He said the local council approved on third and final reading the ordinance increasing taxes on cockpit operators in the first week of December while Mayor Sebastian Duterte subsequently signed it on December 23.
He said operators prodded the incumbent local chief executive to lift the ban.
Former mayor and now Vice President Sara Duterte banned cockfighting in the city in April 2020 after several individuals got infected with Covid-19 after attending the six-cock derby for the “Araw ng Davao” celebration at the New Davao Matina Gallera in March, making it the “Ground Zero” for the outbreak in Mindanao.
Aside from tax collections, Al-ag said that the local economy is expected to benefit from the resumption of ‘sabong’ as hundreds of derby-goers from different parts of the country would come to this city to participate in national derbies.
He said derby is an “economic stimulant” that would help the city restart the economy and boost tourism.
“The effect is not just (on tax collections) because derby-goers would come to Davao by the hundreds, and they need to check-in at hotels, eat at restaurants, and shop,” he said.
The city has eight galleras, Al-ag said.
He added that they need to secure business permits from the city government before they can resume operations.
He said the higher taxes have yet to take effect after publication.
He said that a new system will be put in place to make sure that right taxes are collected from the operators and avoid them from under declaring the payment of taxes to the city.
He said gallera operators have been directed to ensure that derbies will not worsen traffic congestion.