No more funds for typhoon victims? POGOs owe us P50B, senator says

With the government scraping its coffers to help provinces battered by Typhoon Rolly, Senator Joel Villanueva has reminded revenue generating agencies to shore up tax collection, beginning with exiting Philippine offshore gaming operations (POGO) firms which have some P50 billion in tax deficiencies.

In a statement, Villanueva urged the Bureau of Internal Revenue (BIR) to ensure that it collects all pending taxes, before allowing POGOs to close shop so the government will have available funds to finance the immediate rescue and rehabilitation of communities hit hardest by Rolly.

“Bago pa po magkapandemya ay naniningil na tayo, at ilang beses na rin po natin kinalampag ang isyu ng mga POGO sa mga nakaraan na pagdinig natin. Hindi naman po loan o donation ang kinokoleta natin dito, kung hindi pera ng taumbayan ito sa porma ng buwis na hindi nila binayaran,” said Villanueva. “Ngayon pong nakadapa tayo, hindi naman po siguro kalabisan na maningil tayo sa matagal na pagkakautang ng mga POGO para sa mga kababayan natin.”

“Paubos na raw po ang ating pondo para sa mga biktima ng mga Bagyong Quinta at Rolly. Dapat pong mas maging determinado ang ating BIR na habulin ang utang ng mga POGO na nagkakahalaga ng P50 bilyon dahil magagamit natin ito pangtustos sa mga pangangailangan ng mga biktima ng bagyo,” added Villanueva, chair of the Senate labor committee. “Move on na lang ba tayo sa pagkakautang ng mga POGO? Kahit po nagsasara na ang ilan sa mga POGO, dapat siguruhin ng BIR na sisingilin ng tamang buwis bago payagan isara ang kanilang mga negosyo.”

In its 6:00 a.m. report issued on Nov. 2, the Department of Social Welfare and Development (DSWD) said it has P254.35 million in standby funds available. At least 105,000 persons have been brought to evacuation centers in Region 5, which bore the brunt of Rolly. On the other hand, about 39,000 individuals are taking shelter at evacuation centers in Regions 4A and 4B, and the Cordillera Administrative Region, according to the DSWD report.

Official government estimates pegged the tax deficiencies of POGOs at P50 billion in the form of corporate, franchise, and other taxes, according to Villanueva, whose committee has been investigating into the matter.

POGO firms have reportedly been leaving the country primarily due to the limitations imposed by the government as a result of prevailing quarantine restrictions. With Metro Manila under general community quarantine, POGO firms are only allowed to operate at 30 percent of its capacity.

Typhoon Rolly cut a swath of destruction as it pummeled the provinces of Catanduanes, Albay, Quezon, and Batangas leaving thousands displaced from landslides and flash floods. Local government officials have publicly sought assistance from the national government for additional funds to finance their typhoon relief operations as their existing calamity funds are almost depleted due to the COVID-19 pandemic.

“Matindi po ang pinsala sa mga probinsya ng Catanduanes, Albay, Quezon, at Batangas, at sa iba pang mga bayan na direktang hinagupit ng Bagyong Rolly. Kailangan po ng mga LGU ng karagdagang tulong mula sa national government dahil alam po nating nagamit na ang karamihan sa calamity fund nila para sa COVID response sa kani-kanilang mga nasasakupan,” he said.

Villanueva expressed confidence that the government’s economic managers, hard-pressed as they are to manage the financial aspect of the country’s pandemic response, would be able to augment the resources of LGUs who have sounded distress in the aftermath of Typhoon Rolly.

“We trust that Finance Secretary Sonny Dominguez would continue to nudge our revenue generating agencies to collect what is rightfully due our people. Now more than ever, we need to plug tax leaks because the lives of the displaced depend on the assistance our government. We cannot and we should not fail them,” Villanueva said.