TWO more pieces of legislation made it to Congress’s priority in its last five session days before a June 4 sine die adjournment as President Duterte certified as urgent Senate bills taxing Philippine Offshore Gaming Operators (POGO) and improving protection for overseas Filipino workers (OFW).
Presidential spokesman Harry Roque confirmed on Monday that Duterte certified as urgent Senate bills (SB) 2232 and 2234.
SB 2232 amends the National Internal Revenue Code of 1997 to enable the taxation of POGOs, from which the government is eyeing over P120 billion in revenue over the next four years.
“We hope that through this measure we would not only generate the much needed revenues in the country but also place the industry under stricter government oversight,” Roque said in a statement.
Also certified as urgent by Duterte is SB 2234 creating the Department of Migrant Workers and Overseas Filipinos.
Roque said the new department, which will consolidate government offices, which manage OFWs affairs, will improve the protection of the rights and welfare of Filipinos abroad.
Possible adoption
House Ways and Means Chairman Joey Sarte Salceda, principal author of the POGO bill in the House, said the lower chamber is open to adopting the Senate version depending on its final outcome. “If they finish today, we will have a POGO tax bill on President Duterte’s desk during the sine die adjournment. I want this bill passed as soon as possible, so I am open to recommending to the Speaker that we adopt the bill the Senate passes this afternoon,” Salceda said.
Under the version of the House which was passed in February, POGOs will be subject to a 5-percent tax on gross gaming receipts. Their service providers will be subject to regular taxes. Non-resident employees of both will be subject to a withholding tax of 25 percent of gross income, with a presumed income of P600,000. The Senate version adopted these rates in the committee report of the Ways and Means panel.
“There is very little difference between the House and the Senate version since, like the Estate Tax Amnesty earlier, the Senate Committee on Ways and Means saw little need to repeat the extensive hearings and study we have conducted in the House. So, the bill is almost identical to that of the House,” Salceda said.
Senate plenary tackles bill
The Senate opened plenary deliberations Monday on a bill taxing POGOs, with Senate President Vicente Sotto III sharing the expectations of Executive Department officials on potential revenue sources.
in an interview before presiding over Monday’s session, Sotto shared Neda chief Karl Chua’s expections on potential additional revenues from POGOs, and confirmed the bill had been certified urgent by the Palace.
“Yes, the government can make a lot of money out of them,” the Senate leader said in a TV interview, adding: “I do not have the figures, but I think the government is trying to get 5 percent of their income.”
Sotto gave assurances assured the senators will strive to pass enabling legislation to raise additional revenues needed to bankroll various government projects.
Asked if Congress can pass the revenue measures before the lawmakers adjourn, the Senate leader replied, “Best effort yan.”
He also promised “best efforts” for passing the amendatory bills to the Foreign Investments Act and the Public Services Act, the measure creating the Department of Migrant Workers and Overseas Filipinos, the Hybrid Elections Act, the Expanded Solo Parents Act, and the bill setting the date of the Bangsamoro Autonomous Region elections.
With “perhaps one or two interpellators left” to grill sponsors of the FIA, the PSA and the Department of Migrant Workers Act, which he noted “are all certified by Malacañang,” there’s a big chance that “… if we pass it on Thursday on second reading, we may pass it on third reading. That is the importance of the certification of urgency by the President. It removes the three-day rule that the Constitution has mandated.” Sotto was referring to the mandated gap between second- and third-reading approvals.
Salceda’s bill on POGO taxation, meanwhile, also allows the Philippine Amusement and Gaming Corporation (Pagcor) and special economic zones to charge 2 percent of gross gaming receipts as regulatory fee from POGOs.
The government may generate P121.9 billion in revenue from the measure over the next four years, according to Salceda.
In a related development, Duterte also signed two new laws: Republic Act 11551 and RA 11552.
RA 11551 integrates labor education in both public and private tertiary education.
It mandated the Commission on Higher Education (CHED), Technical Education and Skills Development Authority (Tesda) and the Department of Labor and Employment (DOLE) to develop programs for the implementation of the said law.
CHED and Tesda in consultation with DOLE will issue the implementing rules and regulations for RA 11551 within 60 days of its effectivity.
Meanwhile, RA 11552 extends the “lifeline rate” or socialized pricing mechanism for qualified electric consumers living below the poverty line.
It tasked the Energy Regulatory Commission (ERC) to come out with the lifeline rate, which will be exempted from cross subsidy phaseout for a period of 50 years until otherwise extended by the law.
ERC will also promulgate the rules and guidelines for qualified consumers.
Until the said consumption level, subsidy and rate has been determined by ERC, the current numbers will continue to be applied.
ERC together with the Department of Energy and the Department of Social Welfare and Development (DSWD) will have 90 days to come out with the implementing rules and regulations for 11552.