The Bureau of Internal Revenue (BIR) recently met with the operators of the various lotto outlets in the country to flesh out the confusion created by regulations exempting lottery tickets from all kinds of taxes.
The exemption and its interpretation have always befuddled the over 10,000 strong Philippine Online Lottery Agents Association Inc. (POLAAI) and have since sought audience with the BIR the past many years.
A day after Valentine’s Day, the confused lotto operators finally had their wish granted as BIR chief Romeo D Lumagui Jr. finally met with the association representatives.
In the meeting, the POLAAI reiterated their lack of clarity on the interpretation of the provisions of the National Internal Revenue Code as this impact on the taxability of its ranks.
Existing legislation provides that the sale of Philippine Charity Sweepstakes Office (PCSO) lotto tickets is exempt from all taxes, including the percentage tax.
Lumagui gamely laid it down to POLAAI members what the regulations provide and how these relate to their day-to-day operations, saying clearly that lotto operators and their agents are taxable entities under the law.
POLAAI then assured Lumagui of their tax compliance and cooperation with the BIR, thanked the BIR for their guidance and expressed their desire for a long-term partnership with the Bureau.
They noted the meeting with the top revenue official was the first time that their request for a meeting with the BIR leadership was granted.
POLAAI committed to educate its 10,000 membership of proper tax compliance and Lumagui strongly supports this activity as an excellent taxpayer’s service is one of his advocacies.
“We at the Bureau of Internal Revenue, with our thrust towards service excellence, katulong niyo po kami para sa maayos at matuwid na pagbabayad ng buwis. We will provide lectures, information materials, and series of seminars in different fora to instill and promote education regarding the tax requirements and compliance of your sector,” Lumagui said.
