Philippines Weighs Tax Amnesty and Stricter Online Gambling Rules

The Philippine Department of Finance (DOF) is reviewing plans for a General Tax Amnesty program alongside new regulations targeting the online gambling industry, according to Finance Secretary Ralph Recto. Speaking during the 2025 EJAP Economic Forum in Manila, Recto explained that while no fresh tax proposals have been introduced, several refined fiscal measures are awaiting approval, with the amnesty and gambling measures among the key considerations.

Recto emphasized that this initiative would differ from the earlier bill passed by Congress but vetoed in 2019, which was rejected partly due to the absence of a bank secrecy waiver for cases involving fraud. The proposed General Tax Amnesty, he said, is intended to pass before year-end, pending review and approval from President Ferdinand Marcos Jr. or the Cabinet.

“But we’ll have to have it approved yet with the President or in the Cabinet,” Recto noted.

Increased Regulation on Online Gambling

The Finance Secretary also addressed the growing focus on online gambling, saying the government is looking to impose tighter controls. This aligns with President Marcos Jr.’s plan to convene a “semi-summit” to examine online gaming concerns through a coordinated, whole-of-government approach. Recto noted that the issue is under active discussion, with further meetings planned to determine the scope of these measures.

One proposal under consideration is raising the Philippine Amusement and Gaming Corporation’s (PAGCOR) current online gaming charge from 30% to potentially 35% or 40%. Recto clarified that such a change would not require new legislation, though PAGCOR’s input and implementation would be essential.

“I’d say today if the rate is 30%, is it possible to bring that up to 35, 40, so on and so forth. But we’ll consult with PAGCOR on that as well because they will have to implement it,” he explained.

The government is also reviewing suggestions to ban public officials from participating in online gambling, as well as to prohibit government-owned and controlled corporations (GOCCs) from investing in the sector. Recto said he supports these restrictions, confirming that the Maharlika sovereign wealth fund will not invest in online gaming.

Legislative and Regulatory Developments

The move by the DOF comes amid heightened political and public debate over online gambling’s place in the Philippines. The Philippine Senate is scheduled to hold a hearing on August 14, led by Senator Erwin Tulfo, Chair of the Senate Committee on Games and Amusement, who has been vocal in his call for a nationwide ban on online gaming. Tulfo’s position is supported by groups such as the Catholic Bishops’ Conference of the Philippines, which also advocates for a total prohibition on online gaming.

The Senate inquiry will examine various bills and amendments that could either strengthen regulatory oversight or completely outlaw online gambling. This legislative review coincides with regulatory bodies like PAGCOR and the Bangko Sentral ng Pilipinas introducing frameworks designed to limit the potential harms of online gaming.

Recto also confirmed that the DOF is investigating the Government Service Insurance System’s PHP1 billion investment in DigiPlus Interactive Corp., a development adding further scrutiny to government-linked involvement in the gambling industry.

As discussions progress, the combination of fiscal reform through the General Tax Amnesty and enhanced regulatory oversight of online gaming is shaping up to be one of the most closely watched policy areas in the Philippines this year. The outcome could redefine the legal and financial landscape for online gaming operators in the country.

Source: 

DOF eyes tax amnesty, stricter rules on online gambling, pna.gov.ph, August 11, 2025.