Neda backs Pogo tax to shore up gov’t revenues

The state planning agency National Economic and Development Authority (Neda) is backing moves in Congress to institutionalize taxation on Philippine offshore gaming operators (Pogos).

On the sidelines of the Eighth Monitoring and Evaluation Forum Tuesday, Socioeconomic Planning Secretary Ernesto M. Pernia said Neda was “definitely” supporting Albay Rep. Joey Salceda’s House Bill (HB) No. 5267, which would slap a 5-percent franchise tax on Pogos and a 25-percent personal income tax on their workers.

HB 5267 was approved by the House committee on ways and means on Monday.

Finance Secretary Carlos G. Dominguez III also earlier expressed support for Salceda’s bill.

“It’s about P45-billion tax take. It’s not coffee money,” said Pernia, who heads Neda.

During the Senate plenary hearing on Neda’s 2020 budget on Monday, Sen. Sonny Angara expressed the agency’s contrary opinion to that of the Office of the Solicitor General (OSG), which had said Pogos couldn’t be taxed by the Philippine government.

“We have to tax Pogos,” Pernia said.

The Neda chief said the economic team would reach out to the OSG to formally communicate their position on Pogo taxation.

On Monday, Dominguez said that “since Pogos are providing services to their counterparts in the Philippines, they are subject to income tax,” citing Bureau of Internal Revenue (BIR) regulations issued in 2017.

“The same is true for value-added tax (VAT), which is also imposed on services rendered in the Philippines,” according to Dominguez.