Solon: POGOs must pay withholding tax

House Committee on Games and Amusement chair Eric Go Yap insisted Sunday that Philippine Offshore Gaming Operations must pay withholding tax from their employees.

In a Dobol B sa News TV aired on GMA News TV, Yap said POGOs so far only pay for license fee, which only earned for the government at least P6 billion.

He said that when POGOs operated within the Cagayan Economic Zone Authority way back in 2014, the license fee they paid was less than P1 billion, and that their employees were not required to pay withholding tax as they were situated in an economic zone.

"Ang naitutulong nila sa ngayon ay license fee pa lang sa PAGCOR (Philippine Amusement and Gaming Corporation) na P6 billion sa isang taon.

Wala pa dito yung mga VAT (value-added tax) nila dahil kapag off-shore sila, wala silang babayaran na VAT dito," Yap said.

"Pero yung withholding tax, kailangan magbayad ang POGO companies para sa mga tauhan nila," he added.

According to Yap, even with P5,000 withholding tax for every POGO employee could generate a huge amount in revenues for the government.

"Just imagine, kung magbabayad sila ng P5,000 withholding tax per employee, meron sila 100,000 to 300,000 employees, every month, magkano ang lalabas doon? Malaking amount," he pointed out.

Moreover, Yap believes that Filipinos can also become employees of Chinese-dominated POGOs, as long as they can learn to speak Mandarin.

"Kapag nalaman nilang may opportunity silang magtrabaho sa POGO, hindi na nila kailangang mangibang-bansa at kikita sila ng P60,000 to P100,000 monthly, imposible na hindi nila kakayaning mag-Mandarin," the lawmaker said.

On the other hand, Yap said the proliferation of POGOs in the country can also help boost the real estate industry, as several Chinese employees have started renting condominium units.

But he said, "Ang nakikita ko lang kasing negative dito, yung mga peace and order pagdating sa mga POGO employees na talagang ang titigas ng ulo kasi dahil sa kanilang kultura."

POGOs benefit for the country, he said, carries with it several several disadvantages as the industry has consistently been marred with controversies and concerns, particularly its effects on the local economy, national security, and the Filipino people in general.

The Bayan Muna party-list earlier said in a House resolution that while POGOs are expected to generate additional revenues for the government, it is hounded by serious issues particularly on the monitoring of revenues and the "unbridled" entry of foreigners who eventually work for these operations without valid work permits.

Also, the rise of POGOs in the country causes tensions between Filipinos and Chinese workers as the latter displace the latter in the construction work for POGOs.

Moreover, a Senate probe indicates a rise in prostitution cases linked to POGOs proliferation.

(GMA News Online)