The Philippine Congress recently focused on the fiscal value of online gambling. FPJ Panday Bayanihan party member Brian Poe pointed out at the Budget Coordination Committee meeting that gambling revenue "is embarrassingly inadequate" and insufficient to support the massive financial needs. Finance Minister Ralph Recto responded that online gambling contributes about 60 billion pesos to the treasury, accounting for only 0.23% of the GDP for 2024, and is not a major source of revenue.
Poe further questioned whether the government is prepared with alternative tax sources if regulations on gambling are tightened or if the industry is gradually phased out. Recto stated that the Ministry of Finance is willing to cooperate with Congress and welcomes any new policies that could increase revenue.
As an alternative, Poe suggested imposing a consumption tax on plastic products and raising the current mining tax rate, which is only 2%, emphasizing that both sectors have significant gaps internationally. The Ministry of Finance responded that related tax reforms are already underway and is willing to continue discussions with Congress.
Lawmakers generally believe that the gambling industry brings potential social costs and long-term reliance is not robust. Poe emphasized that the Philippines should shift towards sustainable, high-value industrial tax sources to establish a more stable financial foundation.
