Partylist rep thumbs down POGO tax bill

By Dolly Yasa

 

BACOLOD City – House Minority Leader Stephen Paduano said he voted against the bill imposing new taxes on Philippine Offshore Gaming Operators (POGOs) as the new version was not the one debated on during the period of interpellation.

“I have decided to vote NO for the reason that the substituted bill was not the one debated upon during the period of interpellation,” Abang Lingkod Partylist Rep. Paduano said in a statement.

On February 8, a total of 198 lawmakers approved House Bill (HB) No. 5777 on 3rd and final reading. Only 13 lawmakers voted against the bill, while two abstained from the vote.

If passed into law, HB 5777 would slap POGOs with a 5% tax on gross receipts from their operations covered by the law granting their franchise. The franchise taxes of POGOs are currently computed based on 5% of their net income.

Paduano said significant changes have been incorporated in the bill which were not discussed during the period of debates.

He said that POGOs are required to pay 5% franchise tax to PAGCOR.

“This is in lieu of any other local or national tax,” he added.

He also said that Bureau of Internal Revenue (BIR) Memorandum Circular 102-17 currently governs the procedure in the collection of this franchise tax.

The partylist solon said that “admittedly, nothing in our Internal Revenue Code provides for a tax regime covering an entity which was non-existent at the time, hence, my support for the original intention of this Bill.”

“I even proposed an amendment through Deputy Minority Leader Kit Belmonte, and I really appreciate his effort and taking the cudgels for this representation.”

Paduano also said that “Special Economic Zones with their own Charter such as Aurora, Zamboanga and Cagayan already have a Tax Provision in their Charters, they should have been excluded from the coverage of this proposed revenue measure.”

This bill should have been referred to the Committee on Trade and Industry since HB 5777, in effect, amends the Charter of the Economic Zones, he added.

“Therefore, I have no recourse but to register my NO vote,” he said.