Speaker Ferdinand Martin G. Romualdez.
A BILL filed by Speaker Ferdinand Martin G. Romualdez provides that the 20-percent discount and exemption from the 12-percent value added tax enjoyed by millions of senior citizens and persons with disability shall be on top of any promotional offer or discount given by business establishments.
The proposed law is titled, “An Act enhancing the discount on the purchase of goods and services of senior citizens and persons with disabilities.”
“This bill aims to preserve the preferential treatment accorded to senior citizens and persons with disabilities by mandating the State to adopt an integrated approach on how to make essential programs and other social services available to them in an attainable and convenient manner,” Speaker Romualdez said.
Speaker Romualdez is the principal author of Republic Act 10754 or the Act Expanding the Benefits and Privileges of Persons with Disability (PWDs).
During the 16th Congress, RA 10754 was signed into law on March 23, 2016, by then-President Benigno Aquino III. It allowed millions of PWDs to be exempt from the 12-percent value-added tax (VAT) on select goods and services.
“This is in line with the State policy of promoting a just and dynamic social order that shall ensure the nation’s prosperity and free its people from poverty,” he and his co-authors, Reps. Andrew Julian K. Romualdez and Jude A. Acidre said.
The bill provides: “The discount granted to senior citizens and persons with disabilities, including the twenty percent (20%) discount and exemption from the value-added tax (VAT) on goods and services, or the special discount on purchase of basic necessities and prime commodities, as provided under Section 4 of Republic Act (RA) No. 7432, otherwise known as “Senior Citizens Act,” as amended, and Section 32 of RA No. 7277, otherwise known as “Magna Carta for Disabled Persons with Disability,” as amended, shall be in addition to any prevailing promotional offers or discounts extended by business establishments, if any, has been provided, but in no way that it will require presentation of booklets in the procurement of goods.”
The measure further states: “In no case shall a promotion or discount offered by a business establishment to the general public be considered in compliance with Section 4 of RA No. 7432, as amended, and 14 Section 32 of RA No. 7277, as amended.”
Speaker Romualdez said the proposed measure is aimed at putting an “end or to quell the usual quarrels between senior citizens and PWDs, on one hand, and business establishments, on the other, as to the correct interpretation of the law.”
“To balance the interest between the two parties, this measure provides that the 20 discount for senior citizens or persons with disabilities applied on certain goods and services, the input tax attributable to the VAT- exempt sale to senior citizens and persons with disabilities, and the special discount on basic necessities and prime commodities, shall be treated as part of deductible expense pursuant to Section 34 of the National Internal Revenue Code of 1997, as amended.”
