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/? RECEIVED
FE pyc OCT 09 2018

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City
TIME

SEVENTEENTH CONGRESS Ht S
Third Regular Session 2 >
sais wus
HOUSE BILL NO.

Introduced by Hon. HARLIN NEIL J. ABAYON, III

EXPLANATORY NOTE

Millions of ordinary Filipinos set aside some of their earnings to place Lotto
bets. They are well aware that Lotto is a game of chance and they implicitly trust the
system put in place by the Philippine Charity and Sweepstakes Office (PCSO) to
ensure the integrity of the Lotto draw process.

When by chance the bettor wins big at Lotto or even hits the jackpot, his or
her winnings amounting to more than ten thousand pesos is subject to a final tax of
twenty percent (20%) because of Republic Act 10963, otherwise known as the
TRAIN Law.

Before RA 10963 became law, the Lotto winner had full control over how and
when his or her winnings are spent because all of the winnings (100%) go to him or
her. RA 10963 removed that and made government decide how the 20% final tax
will be spent.

This bill seeks to restore to the Lotto major winner the right to determine how
the winnings shall be spent. The final tax still goes to the government, but this bill
empowers the winner to inform the President of the Philippines how to spend the
final tax - giving him or her a sense of fulfillment in relation to nation building.

“The taxpayer, upon whose Lotto winnings amounting to more than Ten
thousand pesos the final tax of twenty percent (20%) is imposed, is hereby
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,” this bill clearly states.

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Government does not lose any revenue, but the citizen who won the major
prize fair and square at the Lotto will regain the right to say how the winnings are
spent. This is fair and everybody wins.

HA\ IL J. ABAYON, III
Representative, AANGAT TAYO Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8418
HOUSE BILL NO.

Introduced by: Hon. HARLIN NEIL J. ABAYON, III

AN ACT
EMPOWERING LOTTO WINNERS OF PRIZES AMOUNTING TO MORE
THAN TEN THOUSAND PESOS TO DETERMINE HOW THE FINAL
TAX ON HIS OR HER WINNINGS SHALL BE SPENT

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the “Lotto Major Winner
Empowerment Act.”

Section 2. Amendment of Section 5 of Republic Act 10963. Section 5 of
Republic Act 10963 is hereby amended with the addition of the following paragraph
to the Subsection pertaining to “(B) Rate of Tax on Certain Passive Income: - (1)
Interests, Royalties, Prizes, and Other Winnings:

The taxpayer, upon whose Lotto winnings amounting to more than
Ten thousand pesos the final tax of twenty percent (20%) is imposed, is
hereby 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. If the lotto winner does not choose a beneficiary or
beneficiaries, the final tax proceeds shall form part of the incremental
revenues resulting from Republic Act 10963 and shall be spent as
provided therein.

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Section 3. Separability. - If any provision or part of this Act is declared invalid
or unconstitutional, the remaining parts or provisions not affected shall continue to
be in full force and effect.

Section 4. Repealing Clause. - All laws, executive orders, and administrative
orders or parts thereof inconsistent with any provision of this Act are hereby repealed
or amended accordingly.

Section 5. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the online version of the Official Gazette or in two (2)

newspapers of general circulation or with established internet website presence.

Approved.

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