Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No.__39

Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR.

AN ACT INCREASING THE DISCOUNT RATE AND EXEMPTING FROM THE VALUE
ADDED TAX THE MONTHLY ELECTRIC AND WATER CONSUMPTION GRANTED
TO SENIOR CITIZENS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7432,
AS AMENDED, OTHERWISE KNOWN AS THE “EXPANDED SENIOR CITIZENS ACT
OF 2010”

EXPLANATORY NOTE

No other than the 1978 Constitution recognizes the importance of the sacrifices
and contributions of our senior citizens to the country as a whole and to the economy.
The 1978 Philippine Constitution expressly provides that the State shall promote just and
dynamic social order that will ensure the prosperity and independence of the nation and
free the people from poverty through policies adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all

This measure acknowledges the accumulated hard work and participation of our
senior citizens in nation-building. This support for our senior citizens compensates for the
significant role they have imparted to the new generations and the legacies they left for
the future of the Filipinos

Furthermore, this proposed measure will alleviate the problem of our elders in
paying for the costly water and electric monthly consumption. Increasing the discount and
providing exemptions in the usage of utilities by senior citizens will greatly ease their
burden and difficulties.

In view of this, the passage of this measure is earnestly sought.


. ERNESTO “ERNIX” M. DIONISIO, JR.
Representative
First Congressional District of Manita


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No.__39

AN ACT INCREASING THE DISCOUNT RATE AND EXEMPTING FROM THE VALUE
ADDED TAX THE MONTHLY ELECTRIC AND WATER CONSUMPTION GRANTED
TO SENIOR CITIZENS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7432,
AS AMENDED, OTHERWISE KNOWN AS THE “EXPANDED SENIOR CITIZENS ACT
OF 2010”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 4 (c) of Republic Act No. 7432, as amended by Republic Act No.
9994, is further amended to read as follows:

“SEC. 4. Privileges for the Senior Citizens. — The senior citizens shall be
entitled to the following:

*(a) xxx
“(b) xxx

“(c) the grant of fa- minimum of five percent {5%)] FIFTEEN (15%) discount
[relative to] AND EXEMPTION FROM THE VALUE ADDED TAX (VAT)
ON the monthly utilization of water and electricity supplied by public
utilities: Provided, That the individual meters for the foregoing utilities are
registered in the name of the senior citizen residing therein: Provided,
further, That the monthly consumption does not exceed

Kilowatt-hours-{400-kWh}} ONE HUNDRED FIFTY KILOWATT HOURS
(150 KWH) of electricity and {thirty cubic meters (30-m3)] FIFTY CUBIC
METERS (50 m3) of water: Provided, furthermore, That the privilege is
granted per household regardless of the number of senior citizens residing


{therein} IN THE SAME HOUSEHOLD AND THE REGISTERED SENIOR
CITIZEN CONTINUES TO RESIDE THEREIN.

“XXX XXX XXX.”

SECTION 2. Within thirty (30) days from the effectivity of this Act, the National
Commission of Senior Citizens shall, in consultation with the Energy Regulatory
Commission, Metropolitan Waterworks and Sewerage System, and other concerned
agencies, promulgate the necessary rules and regulations for the effective
implementation of this Act.

SECTION 3. All laws, presidential decrees, issuances, executive orders, letters of
instruction, rules or regulations, or parts thereof inconsistent with or contrary to the
provisions of this Act are repealed, amended or modified accordingly.

SECTION 4. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation

Approved,