Tax on offshore gaming revenues a 'good idea,' says finance chief

ABS-CBN News

Posted at Oct 22 2019 02:45 PM

Finance Secretary Carlos Dominguez speaks to reporters in this file photo. Dominguez said a 5-percent tax on offshore gaming firms' revenues is a "good idea." Alfred Frias, Malacanang Photo/file

MANILA -- A 5-percent tax on revenue of offshore gaming firms and their service providers is a "good idea," Finance Secretary Carlos Dominguez said.

The finance chief was asked to comment on the proposed franchise tax on POGOs or Philippine Offshore Gaming Operations by Albay Rep. Joey Salceda, according to Dominguez's office, which released his statement on Tuesday.

"Yes, I haven't seen the exact proposal, but in general, yes. I think that's a good idea. But they are already paying a fee. A fee for that," Dominguez was quoted as saying in a recent interview with reporters.

He was referring to an existing franchise tax that is different from Salceda's proposal.

The government so far collected P1.63 billion in withholding taxes from POGOs from January to August, the Department of Finance said, citing Bureau of Internal Revenue data.

These online gaming firms paid P175 million in withholding taxes in 2017 and P579 million in 2018, the DOF said.

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