THE Philippine Amusement and Gaming Corp. (Pagcor) said on Monday it will have to review first the system of the Philippine Charity Sweepstakes Office (PCSO) if it is asked to take on the responsibility of the agency in line with helping its beneficiaries.
“There is no instruction yet on Pagcor helping PCSO beneficiaries. If Pagcor will be instructed to take on this responsibility, we will need to study the present PCSO system, then we will come up with the appropriate system of taking over. In the UHC [Universal Health Care] law, 50 percent of Pagcor’s contribution to the national treasury will be allotted for UHC,” Pagcor Chairman and CEO Andrea D. Domingo said.
When asked if the functions of both agencies can be merged, Finance Secretary Carlos G. Dominguez III said that since two separate laws created both agencies, the merger of their functions may not be allowed.
“My understanding is that two separate laws created these organizations and I am not certain that the laws allow the functions of one to be transferred to the other. The DOJ [Department of Justice] may have the answer,” Dominguez said.
In a text message to the finance chief, DOJ Secretary Menardo I. Guevarra said that it was not the transfer of responsibilities of the PCSO to Pagcor that President Duterte meant, but the notion of tapping Pagcor to provide medical assistance—normally given out by the PCSO—as a result of the order of the President to close lotto operations.
“I do not think that the President has any intention of transferring the PCSO’s entire mandate to the Pagcor. He only meant that the Pagcor may be tapped in the meantime to continue providing for health- and medical-care assistance, among others,” said Guevarra in a text message to Dominguez.
UHC funding
As for the UHC program, Finance Assistant Secretary Antonio Joselito G. Lambino II said the PCSO’s estimated share of P3 billion in the funding requirements of the UHC program was just 1.2 percent of the total budget needed—at P257 billion for 2020.
“Of the P257 billion required for UHC in 2020, the estimated share from PCSO is P3 billion, less than 1.2 percent of the total budget. Of the estimated P1.437 trillion required for five years, P16.6 billion from PCSO—also less than the 1.2 percent of the total budget,” Lambino said.
He explained that bulk of the UHC’s funding requirements is expected to be sourced from the excise tax increase from “sin” products, and not the PCSO contributions. A newly enacted law raised excise tax on tobacco products further under Republic Act (RA) 11346. Another measure to be proposed by the DOF increases excise taxes on electronic cigarettes (e-cigarettes) and vapor products, as well as alcoholic beverages.
“We will focus our efforts on passing the alcohol and e-cigarettes tax package for UHC, with initial estimates of P15.8 billion in the first year and a total of P111.5 billion over five years based on the version approved by the House [of Representatives] in the 17th Congress. Actually, we can aim for even higher since the previously approved version only included alcohol,” he added.
Over the weekend, President Duterte suspended the lottery operations of the PCSO, citing alleged corruption.
Ordinary Filipinos rely on the medical subsidy provided by the PCSO through its charity operations.
The President’s Spokesman, Salvador Panelo, said the President lost his cool over the massive alleged shortchanging—at the rate of 60 percent to 70 percent—by PCSO of the national government when it declares its income, but offered no details of this.
Despite the DOF saying that it will study the impact of the sweepstakes ban on the UHC, Malacañang stood by the President’s decision, saying it would rather get its revenues for medical assistance for PCSO beneficiaries from other sources, like the Pagcor or the Office of the President, which has discretionary funds.