Published: 30.07.2019, 17:33
2 min read
The Philippine’s gambling industry is set for more growth if what President Rodrigo Durterte is anything to go by. Duterte made the call while making his fourth State of the Nation Address (SONA) earlier last week. The controversial hunger for more online gambling and casinos stunned many observers, but will no doubt spur growth in the sector.
During the address, Durterte announced the remarkable contribution his government obtained from Philippines Amusement and Gaming Corporation (PAGCOR). He urged the regulator’s chair, Andrea Domingo, to push for the increment of gambling firms. The initiative follows the trend the Philippines set at ASEAN 2019 Summit.
Durterte has always been a critic of gambling activities, so his announcement wasn’t an instant synthesis to reporters. It took the intervention of the government spokesperson Salvador Panela to elaborate the speech. Panela clarified that the president indeed “needs more gambling” in the land to increase the government’s revenue.
It is on record that Durterte had previously placed a moratorium on PAGCOR concerning the issuance of licenses to land-based casinos. The spokesperson further emphasized that the “logical sequence” of the president’s statement is about lifting the ban.
On her part, PAGCOR chair is still not convinced if Durterte meant what he said. While speaking to Business World, it was clear that she had doubts if the moratorium had been lifted. She promised to “verify with the president” as soon as she can, to establish the position.
Philippine Government on Gambling
The government continued with the push to have foreign workers with PAGCOR licenses to submit taxes. The international staff, who are licensed by Philippine Offshore Gaming Operators (POGO) are expected to begin remitting withheld tax. However, the Bureau of Internal Revenue (BIR) is already with the exercise.
To resolve the tax issue, BIR has directed that all POGO staff should obtain the Tax Identification Number (TIR) to operate in the country. The state aims to collect $39 million monthly if the unregistered staffs, mainly from China, start boosting the coffers. BIR estimates the number of Chinese in the business to be around 131,000 individuals.
The Inquire reported on Thursday that BIR is again facing another overwhelming duty in granting POGO staffs with TINs. Within just a month, more than 10000 POGO staff stretching the capability of BIR. The Department of Finance now wants POGO operators to begin withholding 25% from its worker. The exercise at POGO source is expected to continue until the backlog clears, even for individuals without TIRs.
