Passage of Bayanihan 3 not urgent – Palace

by Alexis Romero, Paolo Romero (The Philippine Star), 1 Jun 2021

MANILA, Philippines — Malacañang does not see the need to immediately pass an extension of the law that funded the government’s pandemic response.

President Duterte has instead certified as urgent bills seeking to tax Philippine offshore gaming operators (POGOs) and create a separate migrant workers department.

Palace spokesman Harry Roque said Duterte has certified Senate Bill 2232, which aims to tax POGOs by amending some provisions of the National Internal Revenue Code of 1997.

“We hope that through this measure, we would not only generate the much needed revenues in the country but also place the industry under stricter government oversight,” Roque said in a statement.

POGOs have been tied to unlawful activities like tax evasion, money laundering, human trafficking, kidnapping, prostitution and bribery.

Officials have vowed not to condone any illegal activities linked to the gaming operators.

Citing tax bureau data, Senate ways and means committee chair Pia Cayetano said last week that POGO collections totaled P7.18 billion last year, higher than the P6.42 billion collected two years ago.

Roque said Duterte has also certified as urgent Senate Bill 2234 or “An Act Creating the Department of Migrant Workers and Overseas Filipinos.”

He said the measure would provide “a more efficient, whole-of-government approach to protect the rights and promote the welfare and interest of overseas Filipinos.”

While the Duterte administration is pushing for the passage of the two bills, it does not see the need to immediately enact the Bayanihan 3 bill, which aims to address the economic impact of the COVID-19 pandemic.

Roque said economic managers would have to check first whether the 2021 budget has enough funds for pandemic-related expenses, adding that there are still funds available under the Bayanihan 2 Act.

“So we welcome Bayanihan 3 as a fallback, but it seems that the passage of Bayanihan 3 is not yet urgent because we are still spending our existing budget,” the spokesman said.

Little time

Lawmakers have little time to pass priority bills as Congress is set to adjourn on Friday.

However, Senate President Vicente Sotto III said Duterte’s certifications would greatly help speed things up as it suspends the three-day rule or the mandated interval on passing a bill on second reading and third and final reading.

Aside from the two bills, there are other measures considered as priority by both the Senate and the House of Representatives that need to be passed this week.

These are the proposed Foreign Investment Act, Hybrid Elections Act, Expanded Solo Parents Act, Public Services Act (PSA) and the resetting of the elections in the Bangsamoro Autonomous Region in Muslim Mindanao to 2025.

“Some of these are in the really advanced stage. As a matter of fact, perhaps one or two interpellators left… If we pass them on Thursday on second reading, we may pass it on third reading. That is the importance of the certification of urgency by the President. It removes the three-day rule that the Constitution has mandated,” Sotto said.

As of press time, senators were discussing the proposed taxation of POGOs, which is being defended by Senator Cayetano, chair of the ways and means committee.

Sen. Joel Villanueva pointed to the apparent double standard in the government’s regulation of gambling, while Sen. Risa Hontiveros asked that POGO workers be also slapped with taxes like those imposed on expatriates.

The bill seeks to tax POGOs like actual casinos in the country even if they operate online games for foreign players.

The Senate is set to continue deliberations on the proposal to amend the 85-year-old PSA this week, led by sponsor Sen. Grace Poe.

“Welcoming foreign investors in the service sector will not only spur competition leading to better services, but it will also help provide more jobs to our countrymen amid the pandemic,” Poe, who chairs the Senate public services committee, said.