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Councilor sees nearly P32-M collection if online sabong legalized (SABONGARENAS)

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THE Davao City Government is projected to collect nearly P32 million from amusement tax once the online cockfighting (sabong) will be legalized in the city, a councilor said. During the 19th regular session on Tuesday, May 18, Councilor Danilo Dayanghirang presented his item aiming to legalize e-sabong (electronic cockfighting) as a mode of betting and amusement for increased local revenues. Dayanghirang, who is the committee chairperson of the games and amusement, said the City's amusement tax collection on the proposed ordinance has a projected collection of P31,937,500. He explained this based on the proposed P250 amusement tax collection per sultada round of a cockfight for a year. “Before the pandemic, we collect 10-percent per ticket, but in this case, considering there are no entrance fees, we will be collecting the 250 pesos per sultada in lieu of the 10-percent amusement tax,” Dayanghirang said. During the session, the councilor reported the city's collection of amusement taxes in cockfighting for the past two years. In 2019, the city collected a total of P14,615,135.10. The collection in 2020, however, plunged to P4,106.872.60 when the Covid-19 pandemic hit the city, resulting in the prohibition of all cockfighting events to prevent mass gathering. City Treasurer's Office (CTO) representative Mary Emilou Limpot, during the committee hearing, said their office expressed apprehensions regarding the implementation or collection of the taxes in the original draft of the proposed ordinance. Limpot said the nature of e-sabong being electronic has implications as to administrative matters, particularly in the determination and tracking of the gross receipts from bets coming from the city. She said local taxes are territorial and can only be levied to transactions that take place inside the territorial jurisdiction of the city. THE Davao City Government is projected to collect nearly P32 million from amusement tax once the online cockfighting (sabong) will be legalized in the city, a councilor said. During the 19th regular session on Tuesday, May 18, Councilor Danilo Dayanghirang presented his item aiming to legalize e-sabong (electronic cockfighting) as a mode of betting and amusement for increased local revenues. Dayanghirang, who is the committee chairperson of the games and amusement, said the City's amusement tax collection on the proposed ordinance has a projected collection of P31,937,500. He explained this based on the proposed P250 amusement tax collection per sultada round of a cockfight for a year. “Before the pandemic, we collect 10-percent per ticket, but in this case, considering there are no entrance fees, we will be collecting the 250 pesos per sultada in lieu of the 10-percent amusement tax,” Dayanghirang said. During the session, the councilor reported the city's collection of amusement taxes in cockfighting for the past two years. In 2019, the city collected a total of P14,615,135.10. The collection in 2020, however, plunged to P4,106.872.60 when the Covid-19 pandemic hit the city, resulting in the prohibition of all cockfighting events to prevent mass gathering. City Treasurer's Office (CTO) representative Mary Emilou Limpot, during the committee hearing, said their office expressed apprehensions regarding the implementation or collection of the taxes in the original draft of the proposed ordinance. Limpot said the nature of e-sabong being electronic has implications as to administrative matters, particularly in the determination and tracking of the gross receipts from bets coming from the city. She said local taxes are territorial and can only be levied to transactions that take place inside the territorial jurisdiction of the city. In response to CTO's apprehensions, the committee said they will propose two ordinances: one for local application and one for national application. Dayanghirang said the two ordinances uniformly provides for two kinds of taxes to be collected by the City Government: franchise tax, which is 87 percent of one percent of the annual gross receipts derived by the franchisee/operator from the pasa or commission rate on bets made, through electronic means, within the city; and amusement taxes. In terms of franchise tax, he said there is no available data on projected collections as gross receipts of the operations are yet to be determined in the future. Dayanghirang also said his committee recommended the enactment of two ordinances: including permission to allow live broadcast and data streamed cockfighting activities and derbies operation within the city of Davao and allowing e-sabong by amending existing provision of Ordinance 5003, series of 1997 or the cockfighting code of Davao City. During the committee hearing, Daniel Cecilio, Philippine Amusement and Gaming Corporation (Pagcor) representative, said there is a regulatory framework for electronic sabong (eSabong). Cecilio said eSabong is regulated by Pagcor where certain financial considerations are imposed before an entity can engage in online sabong operations. He said that as of now, there are no legal operations of eSabong yet. Cecilio said according to the framework, live cockfighting in cockpit arenas are regulated by local government units, while eSabong is regulated by Pagcor. Lawyer Prince Ever Parel, United Association of Cockpit Owners and Operations of the Philippines Inc. (UACOOP) representative, said during the hearing that they are intending to operate in the city. Parel said they have already approved franchise ordinances in their favor in other areas such as Davao del Sur, Surigao del Sur, and Manila. The councilor said he will pass a general e-sabong ordinance without any named franchise as any interested party still has to apply to the City Mayor's Office. Dayangharang, meanwhile, deferred to the next regular session, and invite other stakeholders including representatives from Pagcor, and Business Bureau. Dayanghirang passing the ordinance will attract legitimate operators and create a world-class cockfighting event that can be marketed globally. The councilor previously said that he is lobbying the ordinance in the City Council because aside from the clamor coming from cockfighting bettors, this will also allow the city to generate additional revenue due. Davao City Mayor Sara Duterte-Carpio, who is firm in banning sabong (cockfighting), admitted in a previous interview that she is planning to allow online sabong in a bid to generate additional revenue for the city after it decided to reduce local fees and charges in favor of the local businesses which are going through hard times due to the impact of the Covid-19 pandemic. Duterte-Carpio added that health protocols will not be violated as bettors can do it within their residences.(from www.sunstar.com.ph)

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