BIR urged to collect taxes from Chinese workers

MANILA, Philippines — Senate President Pro-Tempore Ralph Recto said collecting taxes from Chinese workers in the country is the right approach.

Earlier this week, Finance Secretary Carlos Dominguez confirmed that the government would start collecting income taxes from foreign workers in Philippine offshore gaming operators this month.

"Before you badger Congress to levy new taxes or raise rates, kindly plug the leaks first," Recto said in a statement.

Recto also mentioned that foreign workers might have been flocking the country because the government is not strict.

"The (Bureau of Internal Revenue) can't be strict on Filipinos when it comes to paying taxes, by withholding these at source, while allowing foreign nationals a free pass," Recto said.

The senator also urged the government to collect taxes from Chinese workers in other industries, such as construction.

According to Dominguez, at least P2 billion taxes from 100,000 offshore gaming workers could be collected monthly.

The Philippine government recently imposed an additional requirement for all foreign workers in the country.

Last month, the Department of Labor and Employment said all foreign nationals would be required to secure a "no objection" certificate prior to being issued a working permit and visa.

This is in addition to the new guidelines on the issuance of alien employment permit that the DOLE issued in May.