Lotto Winnings May be Taxed in Philippines
March 1, 2017 Taxation in Philippines
On February 28th Jose Jorge E. Corpuz the chair of the Philippine Charity Sweepstakes Office (PCSO) said that his department opposes a new proposal to drop the tax exemptions currently available on winnings from lotto, sweepstakes and horse-racing.
If the proposal is passed, winnings would see taxes of up to 20 percent.
Jose Jorge E. Corpuz claimed that the number of people participating in lotto and similar activates would drop significantly after consumers felt the effects of the tax on their winnings.
Explaining this possible effect, the chair of the PCSO said “…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?”
In 2016 the revenue of the PCSO rose to PHP 39.7 billion, compared to a level of PHP 37.4 billion in 2015, a jump which was attributed to a greater level of consumer participation, potentially driven by a number of large jackpot prizes.