FOLLOWING the projected 8.5% to 9.5% decline in gross domestic product (GDP), which the country’s economic managers claim to be the “worst” annual GDP contraction since World War II, AAMBIS-OWA Party-list Representative Sharon Garin underscored the need to tap new revenue streams to help the country rise from the quicksand of economic ruin.
Garin lauded approval on third and final reading of House Bill 8065 which seeks to impose a tax regime on offsite betting activities on locally licensed cockfights and derbies, more commonly known as E-Sabong. The measure is expected to generate one billion pesos in revenue and aid the programs spearheaded by the national government to address the adverse impact of the COVID-19 pandemic.
In her sponsorship speech, Garin stressed that the bill is a much-needed shot in the arm for the national coffers and one that will lead to additional infrastructure, better social services, and wider indigent health coverage for Filipinos.
“As the Philippine economy contracted at a slower rate of 11.5% in the third quarter of 2020, we are prompted to tap into all possible means to expedite economic recovery,” she explained.
Garin furthered that eliminating the ambiguity in the regulatory framework of digital activities such as E-Sabong will promote accountability and transparency in the system.
“We need to maximize the national government’s revenue-generating capacity by regulating these activities without overstepping the powers of local government units and government gaming agencies,” Garin added.
Upon the enactment of the bill, a tax equivalent to five percent (5%) based on gross receipts derived from offsite betting activities shall be imposed on locally licensed cockfights and derbies. The bill also mandates the Games and Amusement Board to supervise and regulate such activities.
Garin argues that as the country continues to reel from the devastating effects of COVID-19, tapping into the booming digital economy, including the lucrative sport E-Sabong, might just save the country from the brink of total economic collapse.