AAMBIS-OWA Party-list Rep. Sharon Garin (File photo)
MANILA – A party-list lawmaker on Thursday said the measure imposing taxes on offsite betting activities on locally licensed cockfights and derbies is expected to generate PHP1 billion in revenue that can be used to aid the government’s coronavirus response.
In a statement, AAMBIS-OWA Party-list Rep. Sharon Garin said the proposal is a “much-needed shot in the arm” for the national coffers and one that will lead to additional infrastructure, better social services, and wider indigent health coverage for Filipinos.
Garin stressed the need to tap new revenue streams to help the country rise from the “quicksand of economic ruin” following the projected 8.5 percent to 9.5 percent decline in the gross domestic product (GDP), which the country’s economic managers said to be the “worst” annual GDP contraction since World War II.
“As the Philippine economy contracted at a slower rate of 11.5 percent in the third quarter of 2020, we are prompted to tap into all possible means to expedite economic recovery,” she said.
Garin said eliminating the ambiguity in the regulatory framework of digital activities such as e-Sabong will promote accountability and transparency in the system.
“We need to maximize the national government’s revenue-generating capacity by regulating these activities without overstepping the powers of local government units and government gaming agencies,” Garin said.
On Tuesday, the House passed on third and final reading House Bill 8065, which seeks to amend Section 125 of the National Internal Revenue Code of 1997.
The bill aims to clarify the national government’s share of their revenues for offsite betting on these locally licensed games and to ensure that the government can look into their operations.
Under the bill, the proposed tax shall be 5 percent of gross revenues derived from offsite betting activities on locally licensed cockfights and derbies, and other derivative activities.
The bill, however, provides that the tax imposed shall not be in lieu of taxes required by the local government units, and regulatory fees and charges imposed by government agencies.
Gaming operators of the regulated activities shall be required to specify “Offsite Betting Activities on Locally Licensed Games” in disclosures and documentation required by the Bureau of Internal Revenue, the Games and Amusement Board (GAB), and other regulatory government agencies and instrumentalities.
Gaming operators shall likewise be required to directly remit the payment of tax to the BIR.
The GAB shall be mandated to issue rules and regulations for the fair conduct of offsite betting on locally licensed cockfights and derbies. (PNA)
