The Philippine government has temporarily stopped collecting its controversial online gambling turnover tax, while a new controversy swirls over whether 100k Chinese gambling workers received an unauthorized COVID-19 vaccine. 

On Tuesday, the Philippine Department of Finance announced that it will halt collection of the 5% franchise tax on Philippine Offshore Gaming Operators (POGOs). The announcement followed a Supreme Court ruling on Monday granting a temporary restraining order (TRO) sought by 14 POGOs who felt the tax was a violation of their right to equal protection under the law. 

The Philippine government announced the tax last September and began collecting it the following month. The tax was justified as a means of funding the government’s pandemic response but POGOs felt they were being asked to bear an outsized share of this burden. 

The Manila Bulletin quoted Finance Secretary Carlos G. Dominguez III (pictured) saying that his department would “respect” the restraining order without indicating the government’s long-term response. The Philippine treasury has been severely depleted by COVID’s impact on the overall economy and the government’s share of gambling revenue fell by as much as 80% last year.