The Philippine Amusement and Gaming Corporation (Pagcor) is prepared to take one for the team to placate concerns among its licenseese regarding the Bureau of Internal Revenue’s tax edicts on the country’s gaming industry.
In response to the BIR’s mandate that the government-owned gaming agency and its licensees pay a 30-percent corporate income tax on their net income, Pagcor is preparing to bite the proverbial bullet by reducing license fees by 10 percent.
No formal announcements have been made, but sources told the Inquirer that Pagcor has been deliberating on this issue since the BIR laid down the hammer last year.
Pagcor’s proposed solution would cost the agency a lot of money but it’s a necessary step if it wants to maintain its reputation with foreign investors.
It wouldn’t look too good for the agency, having promised a 5-percent franchise tax before licensees came on board, only for the BIR to spring their 30-percent surprise.
The gaming industry has reportedly given thumbs up to Pagcor’s proposal so the only thing keeping it from getting implemented is an official vote of approval from the Pagcor board, which is expected soon.
Once that’s accomplished, all parties can move forward and leave this mess behind. Or until BIR chief Kim Henares finds another reason to impose higher taxes.