‘Never say never’ on heavier POGO taxes: Palace

Presidential Spokesperson Harry Roque said while this is a possibility, President Rodrigo Duterte would first want to ensure that POGOs and their service providers pay their tax liabilities before they are allowed to operate. (PCOO file photo)

MANILA – Malacañang is not discounting the possibility that heavier taxes could be imposed on Philippine offshore gaming operators (POGOs) instead of small-time online sellers.

Presidential Spokesperson Harry Roque said while this is a possibility, President Rodrigo Duterte would first want to ensure that POGOs and their service providers pay their tax liabilities before they are allowed to operate.

“Never say never po,” Roque said when asked if the Palace was supportive of the proposal of Senate Majority Leader Miguel Zubiri to impose heavier taxes on POGOs.

The government is strictly monitoring POGOs and their service providers after some are operating illegally.

“For now, ang gustong mangyari ng Presidente, magbayad muna sila ng kanilang deficiency taxes bago sila payagang mag-operate muli (what the President wants is that they pay their deficiency taxes first before they are allowed to operate),” he said.

In a statement, Zuburi proposed to heavily impose taxes on POGOs, stressing that it was “insensitive” and “unnecessary” to impose taxes on online sellers.

Roque recognized the plight of online sellers, but noted that taxing online sellers is being done since the previous administration.

“Naiintindihan namin ang hirap ng buhay pero ito pong polisiya po, hindi ito bago. Itong polisiya po na buwisan ang mga online sellers nagsimula pa po noong si Kim Henares ang BIR Commissioner sa panahon po ni Presidente Noynoy Aquino (We understand that life is hard but this policy is not new. This policy to tax online sellers started when Kim Henares was BIR Commissioner during the time of President Benigno Aquino III),” he said.

In a memorandum circular issued by BIR on June 10, the agency asked all persons doing business and earning income through electronic platforms and media “to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, and that they are tax compliant”.

Under Section 236 of the Tax Code, business companies are required to register once with the appropriate Revenue District Officer.

The BIR’s latest memorandum circular covered payment gateways, delivery channels, Internet service providers, and other facilitators.

Finance Secretary Carlos Dominguez III previously said revenues from POGOs could be used as additional funds for coronavirus disease (Covid-19) response.

The BIR is targeting the collection of at least PHP2 billion a month from POGOs.

POGOs that are now operating must provide temporary housing and shuttle services for their on-site workers.

Around 60 POGOs have secured licensed to operate from the Philippine Amusement and Gaming Corp. (PAGCOR).