PCSOs and PAGCOR are considering a tax cut on casino and lottery winnings

The Philippine Charity Sweepstakes Office (PCSO) and the Philippine Amusement and Gaming Corporation (PAGCOR) are seeking to reduce fees on casino and lottery winnings. Under the proposed Passive Income and Financial Intermediaries Tax Act (PIFITA) being considered by the government, the tax rate on passive income would be reduced to 15 percent. This is expected to be able to increase compliance with the law.

At the second public hearing on tax measures, PCSO Chairman Junie Qua said there are plans to cut the tax on lottery winnings by half (to 10 percent) to benefit low-income players. The specialist added: We believe that winners are mostly people in need and so hypothetically we will be able to reduce the tax on winnings.

PCSO’s Kat Contacto emphasized that the charitable fund reached $324 million (29 billion rubles) last year, but 67 percent, or $216 million (19.3 billion rubles), went to theThe DST (Documentary Stamp). For this reason, the PCSO is also lobbying for a reduction in its DST tax liability from 20% to 10%.

Kath Contacto recalled that in 2018, PCSO initially tried to pass the cost on to punters. However, this move resulted in lower ticket sales in 2019.

Because the DST eats up the charitable fund, only 11 percent, or $35.4 million (3.168 billion rubles), was allocated in 2023 to the PCSO’s Medical Access program, which provides a financialntakto added: We are asking the Senate to help us on this issue because charity is the PCSO’s reason for existence and our income is practically the lifeblood of our mission.

Meanwhile, Arnold Salvosa, assistant vice president of PAGCOR’s Corporate Services Department, has proposed that payments at gambling establishments be exempted from fees. The specialist added: Our closest competitors in Asia – Singapore and Macau – do not impose any tax on casino winnings. They treat them as windfall profits rather than income.

Citing the United States tax system, Salvosa noted that casino winnings are levied as part of an individual’s income tax based on parameters that indicate whether they are used as a business or a source of profit.

The site previously reported that by 2028, gaming to


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