Bureau of Local Government Finance Opinion

October 27, 2014 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Ms. Natividad Fernandez Representative JF Toledo & Sons Marketing Corp. No. 192 Kaimito Ext., Napico Manggahan Pasig City Madam : This refers to your letter dated October 8, 2014 requesting the issuance of Certification of Exemption for Mayor's Permit in connection with the requirement of the Bureau of Internal Revenue (BIR) for the renewal of Agreement with the Philippine Charity Sweepstakes Office (PCSO). cHaCAS To support the above request, attached is a copy of the Certification from the Manager, Legal Department of PCSO certifying that PCSO On-Line Lottery and/or the PCSO Lotto Outlets do not need business permit/mayor's permit and/or license fees from the Local Government Units concerned for its operation pursuant to several Supreme Court decisions namely: Nicasio Jaca vs. Hon. Loreto de la Victoria, Supreme Court Resolution dated July 6, 1998; Andres C. Rivas Jr. vs. Hon. Alvin B. Garcia, [CA-G.R. SP NO. 41878]; Humberto Basco vs. Philippine Amusement and Gaming Corporation, 197 SCRA 52; Hon. Jose D. Lina, Jr., Sangguniang Panlalawigan of Laguna vs. Hon. Francisco Dizon Pao and Tony Calvento, August 30, 2001. In this connection, please be informed that his Bureau has no authority to issue a Certificate of Exemption for Mayor's Permit considering that the issuance of such permit is within the jurisdiction of the Business Permit and Licensing Office (BLPO) of the LGU concerned. However, on the basis of the Certification from the PCSO and the decisions of the Supreme Court on the matter particularly in the case of Rivas vs. Garcia , the pertinent portion of which quoted hereunder, it is the view of this Bureau that lotto outlets are not required to secure Mayor's permit from the local government units concerned: ". . . . the local government units are no longer authorized to issue any permit , whether to any government unit or private individual or entities, or require said permit for the establishment, operation and maintenance of gambling, which includes that of lotto , and that the sales of lotto tickets are exempt from all kinds of taxes, including local taxes." (Underlining supplied) DACcIH We hope that this will help clarify matters. Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director