The Bureau of Internal Revenue (BIR) has raised concerns that the government’s P3.2-trillion tax revenue target for this year could be in danger if a total ban on online gambling is implemented.
BIR Commissioner Romeo Lumagui Jr. said that banning internet gaming and other online gambling platforms would force the agency to adjust its financial forecasts. He stressed that the gaming sector contributes significantly to government funds.
So far, the BIR has collected P1.5 trillion in the first half of 2025 — slightly above its midyear goal by 0.5%. However, Lumagui warned that removing such a major source of revenue halfway through the year could cause a large shortfall in collections. The government heavily relies on taxes to fund essential public services, he said.
Lumagui’s comments come as lawmakers and civil society groups renew calls for a total ban on e-gambling, citing its alleged links to crime, addiction, and social issues.
Several proposals are currently being discussed in Congress. Some lawmakers are pushing for stricter regulation and a 10% tax on gambling to fund mental health and rehabilitation services. Others are calling for a complete ban on both domestic and offshore online gambling operations.
As of now, the Marcos administration has not made a final decision. Officials say the issue is still being carefully studied, with the decision to be based on a thorough review of its economic and social impacts.
Industry stakeholders have voiced concerns over potential job losses and the risk of users shifting to unregulated or illegal gambling sites if a ban is enforced without proper transition measures.
Lumagui urged policymakers to consider the impact on government revenue and to strike a balance between moral concerns and economic realities — especially as the country continues to recover from the financial effects of the pandemic.
While discussions continue, the BIR reaffirmed its commitment to tax compliance and revenue efficiency but emphasized that strong support for key tax-contributing sectors will be crucial to hitting this year’s revenue goal.
