“We have to innovate in our strategies to enhance our existing lottery games such as Lotto in connection with Tax Reformation for Acceleration and Inclusion (TRAIN) Law. So, we don’t see the need to introduce a new lottery game at this time although this is part of our strategy to increase our revenues,” PCSO General manager Alexander Balutan said tive April 1, 2018, a final tax of 20 percent shall be imposed on Small Town Lottery (STL) prize winnings exceeding P10,000.
“The 20-percent rate shall be computed on the basic of the full amount of the prize winning. The imposed 20-percent Final Taxes on the prize winnings shall be remitted daily to PCSO,” he said.
In a statement, the PCSO said “a separate “Summary of Winners” subjected to the 20 percent Final Tax shall be prepared on a weekly basis and be submitted every Tuesday by all STL-Authorized Agent Corporations to PCSO.”
“A consolidated report of the “Summary of Winners” shall likewise be prepared on a monthly basis and be submitted within five days following the end of every month,” it said, adding that “the 5-percent Prize Fund Tax shall no longer be remitted to PCSO in lieu of the Final Tax.”
PCSO Gaming Technology Department acting chief Aimee De Viterbo said her department and the gaming sector have started discussing strategies to innovate the games.
“The introduction of the TRAIN Law is very challenging for PCSO because right now, we are already bleeding. Ang laki-laki na ng taxes kaya very challenging siya on how you will implement the law at the same time,” Viterbo said.
De Viterbo noted that despite the TRAIN Law, sales from lotto and other games increased by 2.81 percent with reported overall sales of P5,384,844,980 in January and February.
Viterbo said “PCSO is currently studying how to balance the new tax law and how they can effectively implement it that will benefit both stakeholders.”
