Payment of regulatory fees on PCSO lottery outlets imposed

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Wednesday, February 22, 2012


PERSONNEL of the Iloilo City Treasurer’s Office (CTO) will soon start their door-to-door inspection campaign on all business establishments, including all PCSO-franchised lottery outlets, and impose the payment of regulatory fees.

City treasurer Katherine Tingson announced this after receiving an opinion from the city legal office regarding the local government unit’s (LGU) right in exacting regulatory fees, such as the mayor’s permit or business permit and license, from all Keno online lottery, lotto outlets and small town lottery (STL) agent corporations.

Tingson said the CTO will conduct an intensive collection of taxes with tax mapping and inspections, as well as imposition of regulatory fees from the PCSO-franchised outlets.

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Summons of three notices will be served to PCSO outlets, she added.

In response to the CTO summons, Keno online lottery, located at the ground floor of Amigo Mall, Iloilo City, presented a certification dated January 27, 2011 and issued by the PCSO showing that with the “sale of lottery tickets by PCSO lotto outlets, Keno online lottery and STL agent corporations are exempted by value-added tax (VAT) and three percentage tax and business or mayor’s permit and or license fees from the local government unit concerned pursuant to Section 4 of Republic Act 1160 as amended, otherwise known as the PCSO Charter.”

However, the City Legal Office’s opinion said the online lottery, lotto and STL are not exempted from business or mayor’s permit, and the exemption from taxes of the sale of sweepstake tickets is not absolute.

The exemption from local taxes is not expressly provided for in Republic Act (RA) 1169 and its amending laws. While RA 7160, or the Local Government Code, empowers the LGU to exercise its power to create its own sources of revenue and to levy taxes, fees and charges consistent with the basic policy of local autonomy.

Tingson said the LGU depends mainly on the collection of taxes. (Lydia C. Pendon)

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