Lotto winner must decide how the 20% tax on his winning should be spent

 

 

By Rose de la Cruz

 

With almost P200 million expected from the final tax of the P1-billion pot from the 6/58 draw, Rep. Harlin Neil Abayon III, AANGAT Tayo partylist and deputy minority leader, is proposing that this be decided by the winner, and not automatically go to the government as the TRAIN (or tax reform for acceleration and inclusion) law provides.

 

Abayon said if he would win that pot, he would ask the government to put it on programs for the youth (millennials like him), Warays and the senior citizens.

 

The TRAIN law grants the government the right to collect the 20 percent final tax on lotto winnings and how it is spent is entirely up to the national government with the winner having no say on it.

 

Before the TRAIN Law took effect, the lotto jackpot had no final tax and the winner could spend it all according to his or her wishes.

 

He said his idea is to give back to the lotto jackpot winner the right to decide how the entire jackpot is spent, but the final tax still goes to the government. There is no government revenue loss.

 

For example, the winner should be able to tell the government that the final tax be spent on youth projects, senior citizen programs, public school/s he or she graduated from, or the public hospital he was born at, or on his home barangay or hometown.

 

“In my case, if this bill becomes a law and I win the jackpot prize, I would want my fellow Warays and fellow millennials,” he added.

 

His proposed House Bill 8418 provides the taxpayer, upon whose lotto winnings of over P10,000 will be subjected to the final tax of 20%, is empowered to determine and specify in a notarized letter addressed to the President of the Philippines, the public school, public hospital, government scholarship or educational assistance program, government project, or barangay to which the final tax shall be allocated and spent.

 

The lotto jackpot winner's identity would still be kept secret upon his or her wishes. The rest of the winnings, which is a hefty 80 percent, would be spent on private and personal choices.  

 

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Friday, 06 December 2019
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