Economic benefits from POGOs declining - DOF

The Department of Finance (DOF) said Wednesday that economic benefits from the Philippine Offshore Gaming Operators (POGOs) have been declining. 

Undersecretary Cielo Magno of the DOF made the disclosure during the House labor panel's public hearing on the present profile of POGOs, the revenues generated from them, and their impact on employment and the economy.

Magno said that from the P7.18 billion in taxes that the Bureau of Internal Revenue (BIR) collected from POGOs in 2020, this went down to P3.91 billion in 2021 and has only reached P3.90 billion from January to July 2022.  

"The breakdown of the P3.91 billion [in 2021] is as follows: P300 million from corporate income taxes, P2.7 billion from withholding taxes of POGO employees, and P800 million from other taxes such as business tax, franchise tax," Magno said.

She said that from P8 billion in 2019, revenues from POGOs, as reported by the Philippine Amusement and Gaming Corporation (PAGCOR), dropped to P5.28 billion in 2020 and further to P3.47 billion in 2021.

From January to July 2022, PAGCOR's revenue collection from POGOs was only P1.7 billion.

"In our case, we adjusted the total economic benefits that we get from POGO, using 2021 GDP (gross domestic product)...aside from direct tax payment, we used the data from Leechiu with respect to office space rentals and potential income from housing rentals. We computed this to be at P64.61 billion or 0.3% of the GDP," Magno said.

GDP refers to the gross domestic product or the total value of goods and services produced in a specific period.

Magno also expressed concern that crimes related to the industry, such as illegal POGOs, the influx of undocumented workers, human trafficking, and unjust labor conditions, would affect the country's stature both as a tourist and investment destination. 

"We also want to point out concerns with respect to tourists. If you look at crimes related to POGOs, it can have a direct effect on the (number) of tourists who come to the country and on foreign direct investment (FDI). In one study that we examined that looked at the panel data of 67 countries, it showed that one crime incident in every 100,000 population could result in a decrease in GDP by one percent," she said.

"Based on our estimation, using that result, the potential losses when it comes to FDI for the Philippines could range from P16.7 to P26.2 billion."

Magno also agreed with the observation of Representative Gerville Luistro of Batangas that crimes related to POGOs would mean additional expenses for the country.

"If we want to continue [having POGOs], we would need to allocate more for our security sector, the police, and the Bureau of Immigration, to completely eradicate the crimes related to POGOs," she said.

But for House ways and means panel chairperson Joey Salceda, it is the COVID-19 pandemic, and not the POGOs, which has discouraged Chinese tourists from coming to the Philippines. 

According to Salceda, there was a 90.2% drop in Chinese visitors to the Philippines between 2019 and 2020, when the pandemic hit. 

Chinese visitors to the country also decreased by 99.4% between 2019 and 2022, he added. 

"Kitang-kita naman dito na wala naman diperensya kung may POGO ka o wala kang POGO," Salceda said.

(It is clear that there is no difference whether there are POGOs or not.) 

"Talaga naman wala namang turista pinapalabas ang China dahil sa zero COVID policy nila."

(China is not allowing its citizens to leave their country for tourism because of its zero COVID policy.) 

Senate President Juan Miguel Zubiri earlier announced that China had placed the Philippines on a "blacklist" due to the presence of POGOs in the country, but the Chinese Embassy in Manila disputed this.

The embassy also released a statement saying that POGO-related crimes are bad for China as they are for the Philippines. 

Appeal

Meanwhile, Jacqueline Adap of the Association of Service Providers and POGOs appealed to lawmakers to reconsider calls to ban POGOs as this will deprive a lot of workers of a source of livelihood.

Adap said that working as an encoder for a POGO licensee in Cavite enabled her to raise a family, buy a house and some appliances, as well as send a sibling to school.
 
"POGO lang po ang nagbibigay po sa akin ng way para magawa ko po iyon. Sana po maging open-minded po kayo na huwag niyo naman po sanang isara kasi marami pong natutulungan ang POGO. Hindi lang po ako," she said.

(I was able to accomplish those things because of being a POGO employee, and so I am hoping that you keep an open mind and please, don't shut POGOs down because they are helping a lot of Filipinos, not only myself.) 

"Marami po kami na mawawalan po ng trabaho. Huwag naman po sana," Adap added.

(A lot of us will lose our jobs if POGOs are banned, and we do not want that to happen.) 

Aside from a substantial monthly salary, Adap said she enjoys free accommodation in a condominium, free meals, and free laundry services.

"Hindi [yan] na-pro-provide ng previous work ko…Kasi ngayon po kasi talaga is, si POGO lang po ang alam kong makakapagbigay po sa akin para po sapat siya. Paano na lang po? Paano ko matatapos yung mga… may mga loans pa po ako," she said.

(Those benefits cannot be provided by my previous work. As far as I know, my POGO employer is the only one who can provide such. Otherwise, what would be left of me? I also have loans [to pay].)

Adap also said that she has a good relationship with her co-workers who are foreigners. 

"Two years since nag-start ako sa POGO. Hindi naman po ako magtatagal duon kung hindi okay ang relationship namin between foreigners at dun po sa amin," she added.
 
(I have been a POGO employee for two years, and I won't be staying for that long if I don't have a good relationship with foreigners.) — VBL, GMA News