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TWENTIETH CONGRESS OF THE 
 ) 
REPUBLIC OF THE PHILIPPINES  
 ) 
First Regular Session     
 ) 
HOUSE OF REPRESENTATIVES
H.B. NO. 3416 
INTRODUCED BY REPRESENTATIVE EMMARIE “LOLYPOP” OUANO-
DIZON 
AN ACТ 
ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS AND 
SERVICES OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES 
EXPLANATORY NOTE 
The State recognizes the valuable contributions of Senior Citizens and 
Persons with Disabilities (PWDs) to society and reaffirms its duty to protect and 
promote their welfare in accordance with the 1987 Constitution. Article XIII, 
Section 11 and 13, and Article XV, Section 4, underscore the government’s 
responsibility to prioritize the needs of the elderly and PWDs in the provision of 
social services.  
Republic Act No. 9994, otherwise known as the “Expanded Senior Citizens 
Act of 2010”, and Republic Act No. 10754, otherwise known as the “An Act 
Expanding the Benefits and Privileges of Persons with Disability”, grant a twenty 
percent (20%) discount and exemption from the value-added tax (VAT) on the 
purchase of certain goods and services. 
This bill emphasizes that the discount granted to Senior Citizens and PWDs, 
including the 20% discount and exemption from VAT on goods and services, or the 
special discount on purchase of basic necessities and prime commodities, shall be in 
addition to any prevailing promotional offers or in-store discounts extended by 
business establishments. It also ensures that the cost of the discount will be treated 
as deductible expense for business establishments.  
August 11, 2025
8:00 am


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In view of the foregoing, the immediate passage of this bill is earnestly sought. 
EMMARIE “LOLYPOP” OUANO-DIZON 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 3416 
INTRODUCED BY REPRESENTATIVE EMMARIE “LOLYPOP” OUANO-
DIZON 
AN ACТ 
ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS AND 
SERVICES OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy. - The State shall promote a just and 
dynamic social order that shall ensure the nation's prosperity and independence as 
well as free its people from poverty. The State shall provide social justice in all 
phases of national development, and value the dignity of every human person, and 
guarantee full respect for human rights. 
The State shall adopt an integrated approach to health development which 
shall endeavor to make essential goods, health, and other social services available to 
all at affordable cost. There shall be priority for the needs of the underprivileged, 
sick, elderly, and persons with disabilities. 


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To this end, the State shall preserve the preferential treatment accorded to 
senior citizens and persons with disabilities, and proportionately distribute its costs 
between the government and the people. 
 
SEC. 2. Applicability of Discounts of Senior Citizens and Persons with 
Disabilities to Goods and Services on Promotional Offer. - 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. 
 
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 Section 32 of RA No. 7277, as amended. 
 
SEC. 3. Tax Treatment of Discounts. - The twenty percent (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. 
 
The establishments may claim the discounts granted under subsections (a), 
(c), and (j) of Section 4 of RA No. 7432, as amended, and subsection (a), paragraphs 
(1), (2), (3), (5), (6), (7) and (8) and subsection (d) of Section 32 of RA No. 7277, as 
amended, as deduction based on the net cost of goods sold or services rendered: 
Provided, That the cost of the discount shall be allowed as deduction from gross 
income for the same taxable year that the discount is granted: Provided, further, That 
the total amount of the claimed tax deduction net of VAT, if applicable, shall be 
included in their gross sales receipts for tax purposes and shall be subject to proper 
documentation and to the provisions of the National Internal Revenue Code, as 
amended. 
 
SEC. 4. Implementing Rules and Regulations. - The National Commission 
of Senior Citizens and the National Council on Disability Affairs, in consultation 


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with the Department of the Interior and Local Government, Department of Trade 
and Industry, Department of Information and Communications Technology, 
Department of Health, Department of Finance, Bureau of Internal Revenue, and 
other relevant agencies and stakeholders, shall promulgate the necessary rules and 
regulations for the effective implementation of the provisions of this Act. 
 
SEC. 5. Separability Clause. - If any provision of this Act is declared invalid 
unconstitutional, other provisions hereof which are not affected thereby shall remain 
in full force and effect. 
 
SEC. 6. Repealing Clause. - The pertinent provisions of the following laws 
are hereby repealed, amended, or modified accordingly: 
 
(a) Section 4 of RA No. 7432, as amended by RA No. 9994, otherwise known 
as the "Expanded Senior Citizens Act of 2010," insofar as purchase of goods and 
services which are on promotional discount is concerned; 
(b) Section 32 of RA No. 7277, as amended by RA No. 10754, insofar as 
higher discount granted by the commercial establishment, other existing laws or in 
combination with other discount programs is concerned. 
(c) Section 32(j) of RA No. 9442, entitled "An Act Amending Republic Act 
No. 7277, Otherwise Known as the 'Magna Carta for Disabled Persons, and for Other 
Purposes' "; and 
(d) Section 4(1) of RA No. 9257, entitled "An Act Granting Additional 
Benefits and Privileges to Senior Citizens Amending for the Purpose Republic Act 
No. 7432, Otherwise Known as 'An Act to Maximize the Contribution of Senior 
Citizens to Nation Building, Grant Benefits and Special Privileges for the Other 
Purposes'". 
 
All other laws, rules and regulations, and other issuances or parts thereof, 
which are inconsistent with the provisions of this Act, are hereby repealed, amended, 
or modified accordingly. 
 
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,