MANILA, Philippines - The Philippine Amusement and Gaming Corp. (Pagcor) stood firm on how it computes its monthly remittances to the Philippine Sports Commission (PSC).
But Pagcor promised that in 2011, the PSC stands to gain 10 percent more than the P519 million it received from last year, based on the state gaming firm’s projections this year.
Under Republic Act 6847, the PSC is entitled to a share of 5 percent of Pagcor’s gross income. But since the time of President Ramos in 1992, the Pagcor computes the remittances differently, deducting the franchise taxes and national treasury share from the gross income before computing the five percent pie of the PSC.
“The five percent is still gross because you have to understand we still compute it by five percent,” Pagcor chairman and CEO Cristino Naguiat Jr. said yesterday during the Azkals’ courtesy call.
“First is, we deduct franchise tax after which we deduct the national treasury then that’s the time we deduct five percent for Phil. sports. Basically, this interpretation was done during President Ramos’s time, which was done also during President Estrada’s time and President Arroyo’s time so tuloy tuloy lang yan (this should continue),” he added.
Sports officials had lamented the slash in Pagcor remittances and batted for the original computation, which is five percent of the gross without the other deductions.
“If you’re comparing the remittance during the time of Pres. Ramos, halos nag-double na this time, it’s more than double in fact (and) every year, tataas yan definitely,” the Pagcor chief added.
PSC chairman Richie Garcia said it’s a matter of interpreting the provisions of RA 6847. “Sa kanila yun galing so bahala na. Kami susunod lang (It’s really up to them. As for us, we just want to follow the law).”
Naguiat said the PSC can expect some P50 million more this year. “For 2011, we’re projecting at least an increase of 10 percent so they will also have a 10 percent increase in remittances.”
Garcia, who earlier expressed alarm over the dwindling remittances from Pagcor, said this is a welcome development.
“Kung madagdagan, mawawala na projection ko na ma-so-short ng P70 million yung budget namin. Kaya na namin siguro hanapan ng source of fund, sa cost saving masasagot na namin yung gastusin (If that’s the case, we’re happy that there will be an increase and we’ll no longer be short by P70 million as we earlier projected. We can look for other sources of funds to fill in the rest of our budgetary requirements),” Garcia said.