TO raise more funds for the government’s health and charity programs, a lawmaker has filed a bill seeking to exempt the Philippine Charity Sweepstakes Office (PCSO) from tax payments.

Negros Oriental Representative Arnolfo Teves Jr. filed House Bill (HB) No. 4528 to generate additional funds for PCSO, stressing that the notable uptrend in sweepstakes ticket sales has been dwarfed by the growing number of nationwide requests for more significant financial assistance.

Teves said his measure seeks to amend the PCSO Charter, reverting to its previous mandate as a purely charitable institution.

In accordance with Sec 28 (3) Art. VI of the 1987 Constitution, Teves noted that “Charitable institutions, churches and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation.”

He said PCSO should be exempted from taxation as well as the payment of documentary stamp tax.

“For instance, in 2018, PCSO Vice President and General Manager Royina Garma said that the PCSO paid P16.7 billion in taxes while P33.6 billion of its revenues went to prizes. This amount could have been used directly to help our less privileged brothers and sisters with their medical needs,” Teves said.

Only P9 billion was left to fund the various PCSO charity programs.

“In view of this, the bill seeks to amend the PCSO charter reverting to its original mandate operating as a charitable institution and concentrate on the implementation of medical health programs and all other activities and programs be removed,” Teves added.

In September 1979, Batas Pambansa Blg. 42 was enacted into law amending the PCSO Charter (RA 1169).

The law raised the fund allocation for the agency’s Charity Fund from 25% of net sales to 30%, while 55% now went to prizes and the remaining 15% for operations.

On top of the 30% share from net receipts, all unclaimed prizes go to the Charity Fund.

As embodied in its charter, the PCSO’s primary objective is to provide funds for health programs, medical assistance and services, and charities of national character.

The PCSO’s mandate sets the pace for the development of community health care in all the regional hospitals nationwide through the establishment of Tuberculosis Centers, Cancer and Pain Centers, and Dialysis Centers that deliver vital medical assistance and services to the people.