Dominican betting representatives estimate that the tax increase would lead to 75 percent illegality.
Dominican Republic.- From the National Association of Sports Betting of the Dominican Republic, they described the Selective Consumption Tax on gambling as "unfeasible", set at 16 percent. Representatives of sports betting estimate that thanks to this new tax, informality would increase from 50 to 75 percent.
In this regard, Jefrey Espinal, vice president of the Sports Betting Association, completely rejected the tax proposed in the Government's Fiscal Reform initiative.
According to local site N, Espinal believes it would be more appropriate if the authorities applied Law 139-11, on Tax Reform, more rigorously, and thus charge tax evaders, regulating the entire gambling sector. Espinal estimates that informality is around 50 percent and with greater control, the authorities would manage to collect more.
“The 16 percent Selective Consumption Tax on the gambling sector, which is not applied anywhere else in the world, would bankrupt our sector,” Espinal assured, who went to the National Congress to express his rejection of the 16 percent tax on gambling, established in the Fiscal Reform presented by the Dominican government on October 7.
The representative of the Dominican sports betting estimates that applying that tax would lead to a decline in games and consequently, the goal of raising more would not be achieved.
See also: Circe Almánzar asks for online gaming to be regulated in the Dominican Republic: "It could be a very important source of income for the government"
The Dominican government, through the Minister of Finance, Jochi Vicente, announced on Monday, October 7, the details of the fiscal reform or modernization. According to the official, the goal of the reform is “to meet the demands of the citizens concerning basic services, which also suggests an increase in public spending”.
The Government reported that with the fiscal reform proposal presented this Monday, it aims to increase collections by RD$122,486.6m, equivalent to 1.5 percent of the GDP.
The proposal includes a new selective tax on gambling, with the aim of collecting RD$1,512m (USD24.7m). Also, the Government proposes that from the reform, the exemption on the importation of gambling machines and devices would be eliminated. In addition, the proposal establishes that the maximum withholding on prizes or winnings obtained in gambling would increase from 25 to 27 percent.
The Senate’s final hearing will focus on alleged links between offshore gaming operators and Chinese espionage.
The Philippines.- Senator Risa Hontiveros has announced that the Senate Committee on Women, Children, Family Relations and Gender Equality, which she chairs, is to hold its final hearing on alleged criminal activities and irregularities linked to offshore gaming operators on November 26.
Hontiveros said the 16th and last hearing will focus on reportedly spying activities by the Chinese government. “We have gathered new information, especially on China having spies here in the Philippines through offshore gaming operators,” Hontiveros said. She cited testimony from She Zhijiang, who claimed both he and Alice Guo, the suspended mayor of Bamban, Tarlac, were involved in espionage.
“In the next hearing, we will present the legislative reforms that need to be pushed here in the Senate due to a lot of irregularities and policy gaps that we have seen in the spread of POGO and its related crimes,” Hontiveros added.
Previous hearings focused on illegal offshore gaming operations in Pasay, Clark, Porac, and Bamban, Tarlac, where hubs for scamming and hacking were uncovered. The Senate has also scrutinised the role of local officials accused of aiding offshore gaming operators in disguising illegal activities as legitimate businesses.
Guo was arrested in Tangerang City, Jakarta, in September after a search. She had left the Philippines on July 17. Senate inquiries uncovered bank dealings involving companies owned by Guo totaling hundreds of millions of pesos, which facilitated the establishment of an offshore gaming operator in Bamban. The Anti-Money Laundering Council (AMLC) said that Guo could face prison sentences totaling 560 years if found guilty of money laundering charges.
