PCSO charter needs amendment to exempt lotto winnings from tax

MANILA, Philippines — The Charter of the Philippine Charity Sweepstakes Office (PCSO) should be amended to exempt lottery winnings from 20 percent tax, an official said yesterday.

The Tax Reform for Acceleration and Inclusion (TRAIN) law requires 20 percent tax on all lottery games of the PCSO if the amount of the winning is above P10,000.

Under the National Internal Revenue Code, lotto winnings and all PCSO prizes are tax-exempt.

PCSO general manager Alexander Balutan earlier invited a representative of the Bureau of Internal Revenue (BIR) to meet with officials of the charity agency to discuss the effect of the TRAIN law.

Balutan earlier expressed concern that bettors might be discourage to patronize PCSO games such as lotto, keno (lotto express), small town lottery and sweepstakes with the 20 percent tax on lottery prizes.

“We have to get the opinion of the BIR so we can explain this matter to the gaming public,” the PCSO chief said.

“But according to our lawmakers, that’s still a windfall. If you win P100 million and have to give back P20 million to the government, you would still be happy with it,” he added.

Balutan is optimistic that despite the tax on lottery prizes, the PCSO would continue to earn more revenue from lottery games to ensure the delivery of services to the public.