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MANILA – The House of Representatives passed a proposed measure that would tax off-site gambling on locally licensed cockfighting and derbies.
By voting 215-1, House lawmakers approved House Bill No. 8065, which amends section 125 of the 1997 National Internal Revenue Code.
In a statement last week, House Ways and Means Committee Chairman Joey Salceda said the measure taxes an industry that was previously untaxed, “without causing any economic damage.”
“Gambling is an inelastic demand not essential … Online gambling operations in sabong are authorized by local ordinances. Due to the digital change, now there are electronic betting operations in such games. But the electronic aspect is a gray area, although the airwaves are national property ”, said Salceda.
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Under the proposal, the tax should be 5 percent of gross income derived from off-site gambling activities on locally licensed games. It will not substitute for taxes imposed by local government units or regulatory fees and charges imposed by government agencies.
The LGUs maintain full regulatory and revenue-raising powers over gaming and betting on the premises.
“Due to this ambiguity, we cannot impose national taxes on these activities. By clarifying this gray area in my proposal, we hope to raise more multiples in revenue than the BIR collection of the P13.7M booths in 2019, ”he said.
The proposal is expected to raise at least P1.25 billion in its first full year of implementation.
Passage of the bill paves the way for Senate action on the measure.
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Sabong, e-sabong, local derbies, cockfighting, House of Representatives, National Internal Revenue Code of 1997, House Bill No. 8065
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