PCSO wants exemption from tax payments, two solons agree

MANILA, Philippines — The Philippine Charity Sweepstakes Office (PCSO) on Friday said it wants to be exempted from paying taxes.

During the House deliberations on the PCSO’s 2020 budget, PCSO Vice President and General Manager Royina Garma said the agency paid over P16 billion in taxes, while it was only able to provide around P9 billion for charity.

Albay 1st District Rep. Edcel Lagman then asked PCSO officials if Congress should “rationalize” the PCSO’s tax obligations in relation to their charity function.

“In what manner should we make that rationalization? Are we going to decrease your tax obligation or exempt you from taxes?,” Lagman asked.

Garma answered, “I think it will be best if we will be exempted from taxation.

Lagman agreed with Garma that “there is a need to rationalize your tax obligation.”

“Because your charity, which is the main function of your agency, is much lower than your tax obligation,” the lawmaker said.

Garma proposed that 30 percent of the PCSO’s total revenue, minus the taxes and the mandatory contribution, be allocated to charity. This amounts to over P18 billion, she said.

Surigao del Sur 1st District Rep. Prospero Pichay Jr. also agreed that the PCSO should be “tax-free” as the agency should give their revenue to charity.

“Bakit kayo nagbabayad ng tax? Since you are a charity organization, you should not be paying taxes,” Pichay said.

“I think we have to re-study that. We have to rationalize,” he added. /muf