Minority Floor Leader Stephen Paduano said he voted “no” to House Bill 5777 taxing persons engaged in the Philippine Offshore Gaming Operations (POGO) and adding a new amendment to the National Internal Revenue Code of 1997 because the substituted bill was not the one debated upon during interpellation.
POGOs are currently required to pay 5 percent franchise tax to the Philippine Gaming and Amusement Corp. in lieu of any other local or national tax, the Negrense legislator said.
Bureau of Internal Revenue Memorandum Circular 102-17 currently governs the procedure in the collection of this franchise tax, he added.
“Admittedly, nothing in our Internal Revenue Code provides for a tax regime covering an entity, which was non-existent at the time, hence, my support for the original intention of this bill,” he said.
However, “I have decided to vote no for the reason that the substituted bill was not the one debated upon during the period of interpellation,” he added.
Significant changes have been incorporated in the bill which were not discussed during the period of debates, Paduano said.
He also said Special Economic Zones with their own charter like Aurora, Zamboanga and Cagayan already have a Tax Provision in their charters, and should have been excluded from the coverage of the proposed revenue measure.
The bill should been referred to the Committee on Trade and Industry since HB 5777, in effect, amends the Charter of the Economic Zones, Paduano added.*