Pagcor-owned casinos to be sold and privatized for 2017 national proposed budget

  • The government will sell Pagcor-run casinos following Finance Secretary Carlos Dominguez’s statement to privatize Pagcor-owned casinos
  • Andrea Domingo, chair of the gaming agency are now preparing the template for the planned privatization so it could maximize the benefits for the government
  • In line with supporting the proposed 2017 national budget of P3.35-trillion, Dominguez is scrutinizing all possible income-producing measures in order to boost the production of money and to balance the expected losses from the plan to lessen income tax

To support the 2017 national proposed budget of P3.35-trillion, the government will sell Pagcor-run casinos following Finance Secretary Carlos Dominguez’s statement to privatize Pagcor-owned casinos.

Andrea Domingo, chair of the gaming agency and a former Pampanga congresswoman confirmed Dominguez’s statement on a House budget hearing. She said: “We are now preparing the template for the planned privatization so we could maximize the benefits for the government,” she said.

In addition to her statement, she also explained to the appropriations committee chaired by Davao City Rep. Karlo Alexei Nograles that half of the P46 billion earned by Pagcor in 2015 came from its gaming operations, while the other half are contributions from licensees.

She added that Pagcor’s contract with billionaire businessman Roberto Ongpin’s PhilWeb on e-games will not be renewed as directed by President Duterte for this would result to a massive income loss of P10 billion a year.

She also admitted that selling state-run casinos would bring in one-time income for the treasury, unlike operating them, which translates to billions in earnings every year.

In line with supporting the proposed 2017 national budget of P3.35-trillion, Dominguez is scrutinizing all possible income-producing measures in order to boost the production of money and to balance the expected losses from the plan to lessen income tax.

Dominguez is also suggesting to set a P6-per-liter excise tax on diesel and to increase a similar levy on gasoline from P4.35 to P10 per liter aside from the privatization of the casinos.

However, this proposal could result into a price hike in several products including transportation fares and consumer products like rice, vegetables, etc.

Income tax rates would fall from 32-30 percent to 25 percent if the planned reduction would continue to commence. Around P170 billion a year would be subjected to income loss if tax cuts would occur, Dominguez says.

Dominguez estimates that the tax cuts would mean revenue losses of about P170 billion a year.

Loading…