Close  

Plan to tax lottery winnings opposed

/ 12:19 AM March 01, 2017

State-run Philippine Charity Sweepstakes Office (PCSO) is opposing the Department of Finance’s proposal to tax lottery winnings, saying revenues intended for health and other services will be slashed once bettors get deterred by taxed winnings.

On the sidelines of a Senate ways and means committee hearing yeserday, PCSO chair Jose Jorge E. Corpuz told reporters that sales would go down if House Bill No. 4774, which proposes to repeal the tax exemption being enjoyed by lotto, sweepstakes and horse-racing winners under Republic Act No. 1169, would be passed into law. Section 4 of RA 1169 exempts these prizes from taxes.

ADVERTISEMENT

In the Senate, a number of pending bills wanted to slap a 20-percent tax on winnings above P1 million.

However, Corpuz noted that lotto jackpot prizes were already automatically levied a 5-percent deduction.

FEATURED STORIES

“If you’re looking to win, for example, P132 million and then you’ll just get P108 million, will you be happy? Will you still bet? The attitude of Filipinos is, ‘what you see is what you get.’ How can you sell the lotto when it’s taxed?” Corpuz said.

“Even if we announce it [and inform the public beforehand] that there is a 20-percent tax on winnings, will you still buy lotto? You’ll be discouraged to buy. Ordinary Filipinos would think ‘isn’t it the government that should help me instead of me helping the government [by paying lottery tax]?’” he added.

Corpuz said the PCSO’s revenues last year rose to P39.7 billion from P37.4 billion in 2015, which he attributed to increased appetite among bettors given the huge jackpot prizes. —BEN O. DE VERA

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, economy, lottery, News, tax
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.