Raised remittance rate lifts GOCC dividend to P40B

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Dividend remittances by government-owned and -controlled corporations (GOCCs) have reached nearly P40 billion so far this year, according to the Department of Finance (DOF).

The dividend collections saw a significant increase, as Finance Secretary Ralph Recto raised the dividend rate remittance of GOCCs.

As of April 24, dividend collections from GOCCs already amounted to P39.8 billion, representing a fivefold increase from the P8 billion recorded during the same period last year, the DOF said in a statement yesterday.

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The finance chief has increased the dividend rate remittance of the GOCCs from their net earnings for 2023 from the minimum of 50 percent, as mandated in Republic Act No. 7656, to 75 percent.

“(We are) looking for ways to increase revenue without new taxes,” Recto told reporters via Viber yesterday.

Last March, the Philippine Amusement and Gaming Corp. (Pagcor) reported that it remitted P4.59 billion in cash dividends to the National Treasury, which already represents 75 percent of Pagcor’s net income in calendar year 2023.

It is higher than the usual 50 percent remittance, which the agency said was pursuant to the request of Recto to Pagcor to advance an additional 25 percent dividend to fund government expenditures.

The DOF also said Recto signed Department Circular 003-2024 last February which provides the guidelines to implement the Special Provisions of the 2024 General Appropriations Act (GAA).

This circular will enable the DOF to mobilize substantial non-tax revenues from GOCCs’ unrestricted fund balances to unlock the Unprogrammed Appropriations of the 2024 GAA to fund the President’s priority programs and projects.

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