National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said on Tuesday the government will recover the lost revenue from the Philippine Offshore Gaming Operators (POGOs).
Balisacan said this at the Post- State of the Nation Address (SoNA) briefing on Tuesday a day after President Ferdinand Marcos Jr. banned POGO operations in the country.
Philippine Amusement and Gaming Corp. (PAGCOR) chairman Alejandro Tengco said in a radio interview that approximately 40,000 Filipino workers will be directly affected by the POGO ban.
Tengco projected that PAGCOR will lose between P7 billion to P7.5 billion in annual revenue due to the POGO closures. Additionally, the Bureau of Internal Revenue will face a loss of at least P14 billion. This estimate does not account for the potential losses in collections by the labor department and immigration bureau.
However, Balisacan pointed out that the government will still generate revenue from taxes such as corporate tax, income tax, and imported products.
He added that the government would collect more from these combined sources compared to the P14 billion in revenue lost from POGOs.
“POGOs contributed less than one-half of 1 percent of our (gross domestic product) as of 2022, that’s what we are likely to lose,” Balisacan said.
“On the other hand, we are losing in tourism due to [the] presence of POGOs. China has made it clear that cross-border tourism is likely to be regulated by them for countries that cater to POGOs,” Balisacan said.
“If you take that into account, losses in GDP is less than 1 percent, so the benefits of banning POGOs outweigh the costs,” he added.
Balisacan emphasized that the negative effects of POGOs on the country, due to the associated crimes, are greater.
He noted that it tarnishes the country’s image, especially as the government strives to attract businesses and tourists.
Balisacan said he is positive the displaced workers will be absorbed in other industries.
“Our workers in POGOs have some skills so they can be absorbed in other sectors. If we need to upskill and reskill them, that’s the job of agencies like DoLE and CHEd,” Balisacan said.