Horseracing industry stakeholders meet with Albay Rep. Joey Salceda (center, in suit) to discuss industry concerns. With him are, from left, MJCI racing manager Jose Ramon Magboo, Philracom commissioner Reli de Leon, former Mandaluyong City Mayor Atty. Benhur Abalos, GAB chairman Baham Mitra, Javier, Leyte Mayor Leonardo M. Javier Jr., PRCI EVP-COO Santiago Cualoping, horseowner Antonio Tan, MMTCI racing manager Rondy Prado and PRCI racing manager Antonio B. Alcasid Jr.

Horseracing industry stakeholders meet with Albay Rep. Joey Salceda (center, in suit) to discuss industry concerns. With him are, from left, MJCI racing manager Jose Ramon Magboo, Philracom commissioner Reli de Leon, former Mandaluyong City Mayor Atty. Benhur Abalos, GAB chairman Baham Mitra, Javier, Leyte Mayor Leonardo M. Javier Jr., PRCI EVP-COO Santiago Cualoping, horseowner Antonio Tan, MMTCI racing manager Rondy Prado and PRCI racing manager Antonio B. Alcasid Jr.

 

By Jenny Ortuoste

In view of declining sales and other concerns, Games and Amusements Board chairman Abraham ‘Baham’ Mitra led a roundtable discussion with Albay Rep. Joey S. Salceda, chairman of the House committee on ways and means, and horseracing stakeholders on issues affecting the sustainability of the horseracing industry.

Tuesday’s meeting in Mandaluyong City was held in cooperation with Philippine Racing Commission (Philracom) commissioner Reli de Leon.

Philracom is the government agency tasked to regulate and supervise the sport, while GAB has jurisdiction over the wagering aspect of horseracing, providing check-and-balance function.

Among the issues they brought to Salceda’s attention were high taxes, possible adoption of new measures through policy-making procedures, and the terms of legislative franchises of the three racetracks.

Representatives from the horse racing clubs that operate the racetracks and horse racing stakeholders were also present at the breakfast meeting to voice their concerns.

Among the reasons cited for the decline in the industry’s revenue were the huge taxes imposed on winnings and on the importation of stallions and their feeds.

“The first step we need to take to keep the horseracing industry from extinction is the restructuring of taxes on winnings and importation of horses. Lower taxes will surely encourage horse breeders to import more horses,” Mitra told the Manila Bulletin.

De Leon said Philracom submitted to Salceda the agency’s data on horseracing sales, horse prizes and taxes for the last four years, and it shows, he said, that the implementation of the tax reform law in January 2018 adversely affected horseracing sales and horse owners’ prizes.

And because sales have declined over the past two years, direct taxes remitted to the government also dipped in 2019, De Leon pointed out.

“Looking at the data, makikita na (it can be seen that) the industry is suffering,” he said.

The racing commissioner also said the stakeholders present appealed to Salceda to help boost the flagging industry by asking the Department of Finance (DOF) and Bureau of Internal Revenue (BIR) to instead enforce, for the next two years, the franchise tax as provided for in the congressional franchises of the three racetrack operators – Manila Jockey Club, Inc. (MJCI), Philippine Racing Club, Inc. (PRCI), and Metro Manila Turf Club, Inc. (MMTCI).

According to De Leon, the franchise tax will be “better” than the current tax structure being imposed.

Also discussed was the renewal of franchises of the three racing clubs since they are allowed to operate only upon issuance of a Congressional franchise. MMTCI’s expires in April this year, MJCI and PRCI’s in 2022. A former solon has said that it takes at least two years to process the renewal of a franchise.

A hearing of Salceda’s ways and means committee is set on Jan. 29 to discuss the taxes on the horseracing industry.

The racing industry “will attend in full force,” De Leon said.

Source: Manila Bulletin