PCSO spends more on taxes than charity, solons learn
Published August 23, 2019, 3:11 PM
By Ellson Quismorio
Congressmen rued on Friday the low amount spent last year by the Philippine Charity Sweepstakes Office (PCSO) on its charity programs, in comparison to the taxes that it paid.
The House Committee on Appropriations, chaired by Davao City 3rd district Rep. Isidro Ungab, held a hearing Friday on the operations and programs of the PCSO, which are being funded by the agency’s own earnings generated from games such as charity sweepstakes, races, and lotteries. The hearing was part of the ongoing budget cycle.
Panel vice chairman Albay 2nd district Rep. Joey Salceda quizzed PCSO General Manager Royina Garma why the PCSO’s average assistance per person went down from P19,000 per patient to P16,000.
“In short tinitipid natin… Bakit ninyo binaba per person? (In short we’re being stingy to them…why did we lower the amount per person?)” Salceda asked.
Salceda said that, while it was laudable the PCSO increased the number of persons medically assisted by the agency, the average assistance per person, however, was reduced.
Salceda, also chairman of the Committee on Ways and Means, noted that there was a 27-percent increase in the PCSO’s individual medical assistance in terms of volume, a 26-percent increase in assistance for confinement, and a 255-percent increase in assistance for dialysis patients.
Garma said the PCSO was trying to distribute whatever funds were available to extend medical assistance to persons.
“Pinagkasya lang po namin, kaya kung ano lang po yung pondo na mayroon kami yun lang po ang kaya naming ibigay sa tao. So yun po ang situation ngayon sa PCSO (We just make do with it, we give whatever funds we have to the people. So that’s the situation now at the PCSO),” Garma said, adding, “We cannot actually give what we do not have.”
Albay 1st district Rep. Edcel Lagman, an independent member of the House of Representatives, asked Garma how much of the PCSO revenue was allocated for prizes, tax payments, and charity programs.
In 2018, Garma said P33.6 billion went to prizes, P16.7 billion went to tax payments, and only P9 billion was used to fund the agency’s charity programs.
Lagman asked Garma regarding her view on the possibility of Congress working on how to rationalize the PCSO tax obligation in relation to the agency’s charity function.
“Your charity (funding) is much lower than your tax obligations. Don’t you think you should be exempted (from taxes)?” said Lagman, noting that the delivery of charity programs is the PCSO’s main purpose.
Garma replied: “I think it would be better if you exempt us from taxation.”
Citing the same figures, Deputy Speaker and Surigao del Norte 1st Rep. Prospero Pichay Jr. later agreed with the points raised during Lagman’s interpellation. “I really think the PCSO should be rationalized.”
The PCSO serves as the principal government agency for raising and providing funds for health programs, medical assistance and services, and charities of national character.
The Individual Medical Assistance Program (IMAP) is considered the flagship program of the PCSO.
It was institutionalized in 1995 to provide timely and responsive financial assistance to individuals with health-related problems.
From January to June 2019, the PCSO allocated 20.64 percent or P2.81 billion of its P12.66 billion revenue to the Charity Fund.
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