Online Gaming Role in Government Revenues Under Scrutiny
During the recent Development Budget Coordination Committee (DBCC) briefing, Rep. Brian Poe of the FPJ Panday Bayanihan Partylist raised concerns about the online gaming role in government revenues. He highlighted that this sector’s contribution remains relatively small compared to the country’s overall fiscal needs.
Finance Secretary Ralph Recto acknowledged the modest impact of online gambling on national income. “The total revenue from online gambling that goes to the national government is roughly ₱60 billion,” Recto stated. This amount represents only 0.23% of the projected 2024 GDP.
Exploring Alternative Revenue Streams
Poe questioned whether the government is prepared to tap other income sources if stricter regulations or even a phase-out of online gaming were implemented. Officials reported that Recto welcomed collaboration on identifying additional revenue avenues. “We’ll gladly work with you on that. Any additional revenue stream for the national government will be very much welcome,” he said.
Looking beyond gaming, Poe pointed out potential new tax bases. “We are looking into possible excise taxes on plastics, which currently has no national excise tax, and on mining, where the Philippines only collects a 2% excise tax—much lower compared to global standards,” he explained.
Mining Tax Reforms and Future Measures
Sources from the Department of Finance noted that reforms to rationalize mining taxation have already been enacted. They also expressed openness to working with Congress on additional measures to increase revenues from this sector.
Balancing Fiscal Policy and Social Costs
Lawmakers have voiced concerns about the broader social costs tied to online gambling. Community members observed that future fiscal policies should prioritize sustainable and productive industries while ensuring consistent government revenue. Poe emphasized the importance of this balance, stating that fiscal policy must support both economic growth and social well-being.
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