As the 19th Congress session counts down, Senator Sherwin Gatchalian is vigorously pushing for two key legislations: a permanent ban on Philippine Offshore Gaming Operators (POGOs), and a significant increase in the tax rate on e-cigarette products.
The chairman of the Senate Committee on Ways and Means emphasized that both proposals have received bipartisan support and are expected to become significant legislative legacies of this Congress.
POGO Ban: From Executive Order to Legal Solidification
Although the President's order has already prohibited POGO operations, Gatchalian points out: "The current executive order lacks legislative support from Congress, which may lead to enforcement loopholes." He cited a Senate investigation report showing that the industry is deeply linked to money laundering, human trafficking, and other transnational crimes, with involved amounts reaching up to 3.8 billion pesos in 2023, and causing systemic corruption in regulatory agencies such as the Immigration Bureau and the Bureau of Internal Revenue.
It is noteworthy:
Data from the Philippine Amusement and Gaming Corporation (PAGCOR) shows that POGO-related crimes have increased by 240% over the past three years
The Senate investigation found that about 67% of POGO employees are suspected of illegal residency
Major source countries like China continue to pressure for the abolition of cross-border gambling
The concurrently promoted e-cigarette tax reform bill proposes to increase the tax rate by 300%, and Gatchalian warns: "Technical smuggling is making the Philippines a dumping ground for nicotine salt products." The latest health department survey shows:
The use of e-cigarettes among teenagers aged 13-17 has surged by 450% within two years
82% of underage users purchase through social platforms
Smuggled e-cigarettes account for about 35% of the market share, with annual tax evasion exceeding 2 billion pesos
"Smugglers always choose to declare the category with the lowest tax burden," Gatchalian revealed in an interview on dzBB radio, noting that criminals often disguise high-concentration nicotine salts as ordinary e-cigarette liquids for entry. Today's hearing may establish tiered tax standards, implementing differential tax rates based on nicotine content.
According to internal Senate sources, Gatchalian has reached a consensus with Senate President Juan Miguel Zubiri to prioritize these two proposals on the legislative agenda. Analysts point out that this is both a social governance need to combat crime and a structural reform for fiscal revenue—after the shrinkage of the POGO industry, e-cigarette tax revenue is expected to fill about 40% of the fiscal gap.
