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Solon seeks to exempt PCSO from taxes.

A bill has been submitted to the House of Representatives to restore the Philippine Charity Sweepstakes Office (PCSO) to its original role as a strictly charitable institution, exempting it from taxation.

Arnolfo Teves, a representative for Negros Oriental, claimed in his submission of House Bill No. 4528 on September 8 that despite a clear upward trend in sweepstakes ticket sales, the growing number of requests for increased financial help from all over the nation has been outpacing PCSO’s income. A copy of the bill was distributed to the media on Thursday.

Teves claimed that converting the PCSO into a wholly charitable organization would exempt the organization from taxation and the requirement to pay documentary stamp tax.

He cited Article VI, Section 28(3), which states that “all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation.” This includes charitable institutions, churches, parsonages or convents attached to them, mosques, and non-profit cemeteries.

“In view of this, the measure proposes to change the PCSO charter reverting to its original mandate operating as a charity institution and concentrate on the implementation of medical health programs and all other activities and programs be deleted,” Teves stated.

He recalled that PCSO General Manager Royina Garma had stated that the organization paid PHP16.7 billion in taxes in 2018 while spending PHP33.6 billion on rewards.

Only PHP9 billion remained to support the numerous PCSO charitable initiatives, Teves noted, adding that “this cash might have been directly used to help our less fortunate brothers and sisters with their medical requirements.”

The PCSO Charter was amended by Batas Pambansa Blg. 42, which became law in September 1979. (RA 1169).

According to him, the law increased the agency’s Charity Fund’s funding allocation from 25% of net sales to 30% of net sales, with 55% now going to prizes and the remaining 15% going to operations.

On top of the 30 percent share from net receipts, any unclaimed awards go to the Charity Fund.

The PCSO’s major goal is to provide funding for health programs, medical support and services, and national charities, as stated in its charter.

By establishing TB Centers, Cancer and Pain Centers, and Dialysis Centers that provide essential medical help and services to the public, the PCSO’s mandate sets the pace for the growth of community healthcare in all regional hospitals across the country.

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