Senator Pia Cayetano on Sunday, Sept. 26 said the newly-signed law taxing Philippine Offshore Gaming Operations (POGOs) or Republic Act No. 11590 is a “major win” for the country as it will help generate billions of pesos in additional funds for public services but without burdening Filipino taxpayers.

Cayetano, who chairs the Senate Ways and Means Committee, noted that for many years, these POGOs have been operating without paying the proper taxes. With this law, they would now be taxed.

“POGOs are offshore gaming operators. That means only foreigners abroad may gamble in POGOs. So the taxes do not come from Filipinos, or even foreigners residing in the country,” said Cayetano, who sponsored the measure in the Senate.

“I’d rather tax the POGOs than see a proliferation of gambling in the country, which sadly seems to be the direction that our colleagues in the House are taking with the recent passage of a bill allowing online gambling,” she emphasized.

Under the new law, 60 percent of total revenues from the gaming tax imposed on offshore gaming companies will be earmarked by the government, and allocated for the implementation of the Universal Health Care Act, 20 percent would be used to augment the Health Facilities Enhancement Fund (HFEP) and 20 percent would be allocated for the attainment of the Sustainable Development Goals (SDGs), with the National Economic Development Authority (NEDA) identifying the specific targets.

"We made sure that the revenues from POGOs will be earmarked for much-needed health programs amid the pandemic, and contribute to the attainment of our SDGs,” added the senator, who also chairs the Senate Committee on the SDGs, Innovation, and Futures Thinking.

Meanwhile, Sen. Risa Hontiveros believes taxing POGOs is not enough, saying it should be banned altogether to put an end to the crimes caused by the employees of the industry.

“I’m still pushing for the removal of POGOs in the country. We should be focusing on giving decent jobs to our countrymen and not supporting the POGOs,” Hontiveros said in a statement.

On Thursday, Malacanang announced that President Duterte has signed into law the measure providing a tax regime for POGOs.

The law imposes a five percent gaming tax on services rendered by offshore gaming licensees and a 25 percent withholding tax on foreigners employed by offshore gaming licensees and service providers.

#POGO industry

Cayetano: POGO Tax Law a major win for PH