Finance Secretary Diokno Calls for the Termination of POGO Industry

Finance Secretary Benjamin Diokno urged lawmakers to break off Philippine Offshore Gaming Operators (POGOs). “If you ask my personal opinion on this, let’s discontinue with the POGO because of the social cost,” Diokno elaborated, further noting that the POGO industry is already seeing a significant decline in revenue generation.

His statement came up during last week’s Development Budget Coordination Committee briefing for senators. This was in line with the National Expenditure Program for 2023. Diokno added that the industry’s total revenues in 2021 amounted to ₱3.9 billion, dropping from the ₱7.2 billion the year prior.

“It also has a reputational risk because people will ask, ‘Why are they going to the Philippines? [It has already been discontinued in China and Cambodia, why are they going to the Philippines?” explained the Finance Secretary. This paints the Philippines as a country that is too “loose” or “not strict” with regard to its rules.

Earlier in September 2019, the Department of Finance (DOF) pressured POGOs for tax liabilities. It’s estimated uncollected withholding income taxes at the time were at ₱21.62 billion. Since then, several POGOs have been shut down. Furthermore, the Bureau of Internal Revenue (BIR) also affirmed that it has had difficulty in collecting franchise taxes from the industry due to “legal issues.” Most POGOs claim that they are not entitled to pay the aforementioned taxes as non-resident corporations.

More recently, the Philippine Amusement and Gaming Corporation (PAGCOR) announced that 40 foreign nationals were rescued from an illegal POGO company in Angeles City, Pampanga after it was raided by authorities. Similar operations have been carried out in an effort to “put an end to the POGO-related kidnappings and human trafficking cases in the country,” said Interior Secretary Benjamin Abalos Jr.

“Iyong legal na POGOs, wala tayong problema. Maganda ang kanilang patakaran, maayos ang empleyado. Ang masaklap dito ay yung mga iligal na nagbibigay ng masamang pangalan sa industriya,” asserted Abalos.

[“We have no problem with legal POGOs. Their policy is good, and the employees are documented. The worst part is the illegal companies who give the industry a bad name.”]

Sources: GMA News, ABS CBN