The Philippine Amusement and Gaming Corporation (PAGCOR) said tax reductions are still possible for the online and brick-and-mortar industries, depending on their performance.
PAGCOR Chairman Alejandro H. Tengco promised that the tax rate for online operators will be reduced by 30% by 2025. However, he also said there could be more adjustments to tax rates based on industry performance.
"If these tax rates stabilize and promote growth, I will not hesitate to lower them again," Tengco said. In order to enhance online infrastructure and customer experience, tax incentives may be provided to brick-and-mortar businesses operating online.
The announcement comes after a tax on internet gambling was reduced from 42.5% to 35% in April 2024. The move is aimed at combating the grey market and boosting investment.
