Rody orders DOJ to probe non-payment of STL taxes

MANILA, Philippines - President Duterte has tasked Justice Secretary Vitaliano Aguirre II to investigate the non-payment of taxes in small town lottery (STL) operations nationwide and run after those liable.

Aguirre said the President wanted to increase government revenues from STL after finding out that only 10 to 15 percent of total revenues were remitted to the Philippine Charity Sweepstakes Office (PCSO) during the previous administration.

“Billions are lost by government in these STL operations,” Aguirre bared in an interview over the weekend.

“The President wants to increase the STL collection and make sure that everything collected will be remitted to PCSO. He intends to use these STL proceeds to fund free medicines to our countrymen,” he added.

The Department of Justice (DOJ) would tap the National Bureau of Investigation for this purpose.

Aguirre also admitted that Duterte already gave the STL assignment to him a few months ago, and it was delayed because he focused on illegal online gaming operations following the raid on the illegal online casino of Chinese gaming mogul Jack Lam in Clark Field, Pampanga.

The STL assignment was further sidestepped by the controversy involving the alleged P50-million extortion by Bureau of Immigration officials on Lam for the release of 1,316 illegal Chinese workers arrested in Lam’s Fontana Leisure Parks and Casino in Clark Field last November.

Aguirre said former police chief superintendent Wally Sombero, who supposedly served as Lam’s middleman, was a resource person of the DOJ on the STL issue.

Aguirre also said that the Palace had created a task force led by Executive Secretary Salvador Medialdea to look into the online gaming and STL operations in the country. Medialdea has met with PCSO officials about the issue.

Aguirre further bared that the government issued new implementing rules and regulations increasing the minimum remittance of the STL operators.

The PCSO earlier said it is set to release stricter implementing rules and regulations (IRR) for STL operations to finally put an end to jueteng. 

“The IRR already took effect and has so far resulted in unprecedented high collections in the first few months of operations under the Duterte administration,” he added.

The government formulated the STL to combat the illegal numbers game jueteng. 

But earlier reports said that some franchise holders of STL actually operate jueteng by using government permits as front.

They supposedly defraud the government of STL sales by violating rules and regulations, such as the absence of point of sale terminals (POSTs), use of “papelitos” (jueteng bet sheets), and maintenance of unregistered “rebisahan” (where bets are brought).    

There are only 18 authorized agent corporations all over the country accredited for STL operations.

Aguirre said that with only 18 corporations, amid underreporting and limited market, some P4.794 billion were remitted in 2015.

About 190 other operators have applied for licenses, but have been rejected under the previous administration.