AGUSAN del Norte Representative Dale Corvera files House Bills (HBs) Nos. 8627 and 8628 mandating the increase of discounts to Persons with Disability (PWDs) and Senior Citizens in the purchase of basic commodities.
“Under existing laws, the Department of Trade and Industry (DTI) and the Department of Agriculture (DA) were given the joint discretion to grant special discounts for PWDs and Senior Citizens on the purchase of basic commodities and in the determination of the proper discount rate,” Corvera observed.
He said that several Joint Administrative Orders (JAO) were issued earlier jointly by DTI and DA pegging the discount rate at 5%. HBs 8627 and 8628 mandate the discount rate and remove it from the joint discretion of agencies that may have different viewpoints on its grant.
Likewise, both measures propose to increase the discount rate from the present five percent (5%) to eight and a half percent (8.5%), since the prices of food were estimated to have increased by 70% since 2008 – the year the grant of discount for PWDs on the purchase of basic commodities took effect. “We have to take note that 8.5% is still conservative, owing to the fact that the discount for Senior Citizens were acknowledged in 2005 or three (3) years earlier with that of the PWDs”, Corvera added.
The measures provide the automatic periodic review of the discount rate every three years to avoid being overwhelmed by inflation and for Congress to have a comprehensive basis for adjusting the discount rate when necessary.
Corvera also claimed that the increased discount rate will not gravely impact the bottom line of retailers engaged in the business of selling consumer products directly to consumers since according to the solon, establishments that grant discounts to PWDs and Senior Citizens are entitled to deduct the said sales discount from their gross income subject to reasonable and easy to comply conditions pursuant to relevant BIR revenue regulations.
