Duterte signs law fixing tax on POGOs By Samuel P. Medenilla @sam_medenilla
& Jovee Marie N. dela Cruz @joveemarie
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HILIPPINE Offshore Gaming Operations (POGO) will now be required to pay taxes for gross gaming revenues and regulatory fees. This, after President Duterte signed Republic Act (RA) 11590 or an Act Taxing Philippine Offshore Gaming Operations as part of the priority legislative agenda to strictly regulate gambling while generating additional revenue for a government that borrowed heavily for the pandemic response.
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Under the new law, POGOs or offshore gaming licensees will have to pay a 5-percent gaming tax, to be remitted to the Bureau of Internal Revenue (BIR) not later the 20th day following the end of each month. The Philippine Amusement and Gaming Corporation (Pagcor) or any special economic zone authority or tourism zone authority or free port authority may also impose a regulatory fee POGOs, which shall not cumulatively exceed 2 percent of gross gaming revenue. Gross gaming revenue or receipts refer to gross wagers less payouts. The accredited service providers of POGOs will be subjected to
the gaming taxes. Of the gaming tax revenues collected from POGOs, 60 percent will be allocated to the following purposes: Universal Health Care Law (60 percent); Health Facilities Enhancement Program (HFEP) of the Department of Health (20 percent); and the achievement of the Sustainable Development Goals (20 percent). Pagcor or the special economic zone authority must get the service of a third-party audit platform to determine the gross gaming revenue or receipts of offshore gaming licensees. Philippine-based POGOs with a license from Pagcor must pay a 25-percent income tax for non-
gaming revenues. RA 11590 also reiterated that foreign nationals (FN) employed by POGO firms and their service providers are not exempt from paying income taxes. Offshore gaming licensees and their service provider will be fined P20,000 for every FN without a tax identification number. The license of the erring establishment may also be revoked. Those FNs who refuse to pay income tax may face deportation and be blacklisted by the Department of Labor and Employment (DOLE), Bureau of Immigration (BI) and other concerned agencies. See “Duterte,” A2
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HE national government’s budget deficit widened to P958.2 billion as of end-August as the growth in state revenue collection failed to keep up with the acceleration of government expenditures. Continued on a3
BSP KEEPING POLICY SETTINGS DESPITE HIGHER INFLATION
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HE Bangko Sentral ng Pilipinas (BSP) announced on Thursday it continues to maintain the country’s all-time low monetary policy rates despite its expectation that the country’s inflation path is higher than earlier expected. BSP Governor Benjamin Diokno said the Monetary Board decided to maintain the interest rate on the BSP’s overnight reverse repurchase facility at 2 percent. The interest rates on the overnight deposit and lending facilities were likewise kept at 1.5 percent and 2.5 percent, respectively. This is despite their latest baseline forecasts which indicate a higher inflation path over the policy horizon. BSP Deputy Governor Fran-
cisco Dakila Jr. said inflation is now expected to average at 4.4 percent, representing an upward adjustment from the 4.1- percent forecast in August. The inflation accelerated to 4.9 percent in August 2021 from 4 percent in its previous month. This is the highest inflation recorded since January 2019. With the August 2021 inflation, the country’s average eight-month inflation stood at 4.4 percent. For next year, Dakila said they also revised upwards their inflation forecast from 3.1 percent to 3.3 percent. For 2023, inflation is expected to average at 3.2 percent from the earlier 3.1 percent projection. Continued on a3
PESO exchange rates n US 50.1820
A road maintenance crew does repair work on potholes left by heavy rains along a stretch of the 117.5-km Marcos Highway, which connects Metro Manila with Infanta, Quezon. With the onset of La Niña, the weather bureau has predicted a higher probability of above-normal rainfall conditions in the country in the next few months until next year. NONOY LACZA
Certify 2022 budget, House asks Palace T
HE leadership of the House of Representatives on Thursday formally asked President Duterte to certify as urgent the P5.024-trillion General Appropriations Bill (GAB) for 2022. Speaker Lord Allan Velasco and Committee on Appropriations Chairman Eric Go Yap said the House sent its formal letter of request to President Duterte
for the issuance of the urgent certification to expedite approval of the 2022 national budget. With this certification, Congress dispenses with the threeday rule between second and third reading approvals of a measure. The Office of the Presidential Spokesperson confirmed that the Office of the President received the request from the House, and
said it was being studied. The House eyes third and final reading approval by September 30 or before the congressional break. At least 34 government agencies and attached agencies, commissions, bureaus and offices will still defend their budget allocations for 2022 at the plenary. Congress goes on break from October 1 to November 7 as can-
didates for all national and local positions file their certificates of candidacy. With the theme, “Sustaining the Legacy of Real Change for Future Generations,” the P5.024trillion budget is equivalent to 22.8 percent of GDP and is higher by 11.5 percent than this year’s national budget.
n japan 0.4571 n UK 68.3730 n HK 6.4451 n CHINA 7.7640 n singapore 37.0812 n australia 36.3167 n EU 58.6828 n SAUDI arabia 13.3794
See “Certify,” A2
Source: BSP (September 23, 2021)