The Department of Finance (DOF) on Wednesday admitted the government may have overestimated the amount of uncollected taxes from Philippine Offshore Gaming Operators (POGO).
In press briefing in Malacañang, Finance assistant secretary Antonio G. Lambino II said the P50-billion projected tax revenue from POGOs last year, which was disclosed in a Senate hearing, was a “very rough” estimate.
During a Senate hearing last month, an official of Bureau of Internal Revenue (BIR) estimated franchise taxes granted to POGOs are worth P17 to P18 billion.
The tax officer also said withholding taxes from POGOs should be P30 billion based on the assumption that monthly tax collection for the said industry should be P2.5 or P3 billion per month.
Lambino, however, said the projected withholding tax from POGOs should only be around P2 billion per month.
For 2019, Lambino said the government was able to collect P6.4 billion–169 percent higher than the year before.
He said they are targeting to significantly raise tax revenues from POGOs by intensifying their collection operations as well as through the passage of legislation clarifying tax policies for the said industry.
Among these laws the DOF is supporting is the bill which will require all POGOs to pay franchise tax whether they are based here or abroad.
Currently, several licensed POGOs, Lambino said, which are operating outside the country, are not paying the franchise tax.