MANILA, Philippines – Senator Joel Villanueva on Monday called on the Department of the Interior and Local Government (DILG) and local government units (LGU) to support the Finance department’s move to shut down Philippine Offshore Gaming Operators (POGO) that are not complying with the country’s tax laws.
In a statement, Villanueva said the DILG should help in this measure by ordering LGUs to revoke business permits of POGOs that are evading their tax liabilities.
The DOF over the weekend ordered the Bureau of Internal Revenue (BIR) to close down and file charges against POGOS including their service providers that fail or refuse to settle the tax liabilities of their foreign workers.
READ: PH gov’t to close down tax-evading POGOs
The order was issued following reports of slow collection of withholding income taxes from select POGOs with tax liabilities amounting to P21.62 billion despite the issuance of 130 letter-notices to these firms.
“We do not owe anything to these errant POGOs who have the gall to refuse the correct payment of taxes of their workers. We expect nothing less than the immediate shut down of these firms,” Villanueva said.
“It is high time that our government acts with dispatch to make these firms comply with our country’s laws. We call on the interior department to support the Department of Finance by asking all local government units to revoke business permits of POGOs who do not comply with our tax laws,” he added.
The Philippine Amusement and Gaming Corporation (Pagcor) earlier assured support for the Finance department’s move to close down errant POGOs.
“We follow the law. BIR has the legal authority to close down establishments who evade taxes. Pagcor supports this move. We are issuing a letter to all POGO operators and service providers to this effect,” Pagcor Chairman Andrea Domingo said in a statement.
Villanueva also urged the DILG to assist the BIR in implementing the order by asking the police to shutter tax-evading online gaming operators the way it closed down operations of the Philippine Charity Sweepstakes Office (PCSO) last month.
It can be recalled that police closed down PCSO outlets in July after President Rodrigo Duterte ordered the immediate suspension of all its gaming operations over the supposed corruption in the agency.
The president later lifted the suspension on lotto and small-town lottery operations but with certain conditions.
Villanueva also pointed out that POGOs only provide “minimal benefits” to the country compared to its effects to Filipino locals and businesses, including the increase of rental rates for residential or office spaces near POGO hubs.
“Hindi biro ang pagsulpot ng sektor na ito at ang mga kaakibat na problemang dala dala nito tulad ng paglikha ng tinatawag na real estate bubble at pagtaas ng krimen sangkot ang mga dayuhan,” Villanueva said.
“Sa ating pananaw, hindi po sapat ang kanilang binabayaran na buwis para payagan itong mamayagpag,” he added.
He also raised concern over the spiking number of crimes involving foreign nationals, citing a recent raid in Pasig City where 277 Chinese nationals were apprehended.
READ: BI arrests close to 300 Chinese nationals in Pasig City
“Dumadayo na rin po sa ating bayan ang mga kriminal na tumatakas sa kanilang pananagutan sa batas ng China, tulad na lamang ng nakaraang raid sa isang opisina sa Pasig noong nakalipas na lingo,” he said.
“Maging ang gobyerno ng China po ay hinihiling na ipagbawal na ang pagpapatakbo ng mga POGO mula sa ating pamahalaan. Maliit lang po ang benepisyo natin sa sektor na ito, at mas malaki pa ang dulot na abala sa atin nito,” he added.
Villanueva, who chairs the Senate committee on labor, said a public inquiry into POGOs will be conducted where they will discuss all the facts and effects it has brought to the country.
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