“If POGOs are considered BPOs, then there would be no need to pay the franchise tax and the license fee,” said Senate Minority Leader Franklin Drilon.
POGOs and other entities could only engage in gambling operations if they have a license from Pagcor, according to Drilon. To get the license, POGOs must pay franchise taxes, he said.
Under the modified enhanced community quarantine and general community quarantine guidelines, BPOs are considered part of essential industries and are therefore allowed to operate during lockdown.“It’s not for them to say so because we are following a definition of POGOs in accordance with guidelines concerning the granting of tax incentives,” Roque said over GMA’s “Unang Balita,” referring to an IT group, the Peza and Drilon.
For one, he said, BPOs came to the country for the Filipino talent and were therefore giving direct and indirect jobs to millions of Filipinos. In contrast, POGOs largely hire foreigners. Peza Director General Charito Plaza reiterated in a statement on Monday what the BPO industry had already made loud and clear — POGOs were not BPOs.Drilon warned that POGOs could avoid paying franchise taxes to the government because of its assertion that these were part of the BPO industry.
But he said POGOs were engaged in gambling and should follow the same rules for other gambling establishments.
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