Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15 JUL 2013 °

BIC PH
SIXTEENTH (16) CONGRESS —
First Regular Session

House Bill No, __ 1449

Introduced by HON.ERIC L. OLIVAREZ
-—$—

EXPLANATORY NOTE

On, 18 June 2010, Republic Act 9994 otherwise known
as the “Expanded Senior Citizen’s Act Of 2010” was enacted
for the purpose of establishing programs and mechanisms to
utilize the contribution of senior citizens in the Philippine
Society and to provide subsidy and benefits to them and to
their families in full regard of the senior citizens’ welfare and
in assuring that they experience the optimal quality of life
they deserve.

However, considering the fast rising inflation of prices
of commodities and services in the country, there is an
imperative necessity to regularly adjust the fixed rates set in
the abovementioned law to ensure that the benefits and
subsidies being accorded to our senior citizens remain at par
with and sufficient for their actual and varying needs so as
not to defeat the very purpose of affording them such
benefits in the first place.

As such, this bill pursues to amend Republic Act 9994,
otherwise known as the “Expanded Senior Citizen’s Act of
2010”, for the purpose of further augmenting and increasing
the benefits and subsidies for the senior citizens according to
the change in the inflation rate and/or relative increase of


prices of general commodities and healthcare services in the
country at the present time, in keeping with the
constitutional policies of health development, social security
and social justice as mentioned and cited in Republic Act
9994 itself.

This bill also reinforces our society’s vigilance towards
affording our senior citizens the best quality of life they
ought to experience notwithstanding the undeniable changes
they had to inevitably undergo, economic, social and/or
physiological wise, as they reach the age of sixty (60) years
(ie. mandatory retirement, deterioration of physical health
that comes with old age, among many others). Moreover, this
bill also recognizes the duty of our government and of our
society as a whole, to meet the specific needs created or
entailed by these sudden changes and which are magnified
by the economic factors such as the above-discussed
inflation rate.

It light of the foregoing premises, the approval of this
bill is highly recommended.

ue Oy

ERIC L. OLIVAREZ
Representative

1st District, Paranaque
City


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH (16'*) CONGRESS
First Regular Session

House Bill No, _1449

Introduced by HON.ERIC L. OLIVAREZ

AN ACT
INCREASING THE SUBSIDY AND BENEFITS ACCORDED

TO SENOR CITIZENS OF THE SENIOR CITIZEN’S ACT OF
2010 AND AMENDING SECTIONS 4 AND 5 THEREOF FOR

THAT PURPOSE.

SECTION 1. Section 4 of Republic Act No. 9994, otherwise
known as “Expanded Senior Citizen’s Act of 2010”, amending Section 4
of Republic Act No, 7432, otherwise known as the "Expanded Senior

Citizens Act of 2003", is hereby further amended to read as follows:
"SEC. 4. Privileges for the Senior Citizens. -
The senior citizens shall be entitled to the following:

"(a) the grant of twenty five percent (25%) discount and
exemption from the value -added tax (VAT), if applicable, on the
sale of the following goods and services from all establishments,
for the exclusive and personal use and enjoyment or availment
of the senior citizen.”

“(1) A. on the purchase of medicines, including the
purchase of influenza and pnuemococcal vaccines, and such
other essential medical supplies, accessories and equipment to
be determined by the Department of Health (DOH). Provided
that grocery items which are not covered by the doctor’s


prescription but are nonetheless necessary for the care-
giving of the frail, bedridden and/or ailing senior citizen
such as but not limited to milk, adult diapers, underpads,
bed pans, alcohol, cotton, tissue, wet wipes and other similar
items, shall be covered by the abovementioned discount.

B, A certification from the Barangay where the senior
citizen is currently residing, to the effect that a household is
indeed taking care of a frail, bedridden and/or ailing senior
citizen may be required of the purchaser of the above-
enumerated grocery items upon payment, before he/she can
avail of the said discount, if only to ensure that the said
purchaser is not misusing the abovementioned benefit for
any other purpose than what has been described herein.

©. Any person who availed of the above-specified
benefit for any purpose other than sustaining or taking care
of a frail, bedridden and/or ailing senior citizen in his or her
respective household or availing the said benefits for the
purpose of hoarding of medical supplies and grocery items
and reselling them to obtain profit and other personal gains
shall be imposed a penalty of fine in the amount of Twenty
Thousand Pesos (P20,000.00) or imprisonment of three (3)
years or both at the discretion of the court.

D. The DOH shall establish guidelines and mechanism of
compulsory rebates in the sharing of burden of discounts among
retailers, manufacturers and distributors, taking into
consideration their respective margins;”

"(2) on the professional fees of attending physician/s in all
private hospitals, medical facilities, outpatient clinics and home
health care services;

"(3) on the professional fees of licensed professional health
providing home health care services as endorsed by private
hospitals or employed through home health care employment
agencies;

"(4) on medical and dental services, diagnostic and laboratory
fees in all private hospitals, medical facilities, outpatient clinics,
and home health care services, in accordance with the rules and
regulations to be issued by the DOH, in coordination with the
Philippine Health Insurance Corporation (PhilHealth);

"(5) in actual fare for land transportation travel in public utility
buses (PUBs), public utility jeepneys (PUUs), taxis, Asian utility
vehicles (AUVs), shuttle services and public railways, including


Light Rail Transit (LRT), Mass Rail Transit (MRT), and Philippine
National Railways (PNR);

"(6) in actual transportation fare for domestic air transport
services and sea shipping vessels and the like, based on the
actual fare and advanced booking;

“(7) on the utilization of services in hotels and similar lodging
establishments, restaurants and recreation centers;

"(8) on admission fees charged by theaters, cinema houses and
concert halls, circuses, leisure and amusement; and

"(9) on funeral and burial services for the death of senior citizens;

"(b) exemption from the payment of individual income taxes of
senior citizens who are considered to be minimum wage earners
in accordance with Republic Act No. 9504;

"(c) the grant of a minimum of ten percent (10%) discount
relative to the monthly utilization of water and electricity
supplied by the 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 one hundred kilowatt
hours (100 kWh) of electricity and thirty cubic meters (30 m3) of
water: Provided, furthermore, That the privilege is granted per
household regardless of the number of senior citizens residing
therein;

"(d) exemption from training fees for socioeconomic programs;

“(e) free medical and dental services, diagnostic and laboratory
fees such as, but not limited to, x-rays, computerized
tomography scans and blood tests, in all government facilities,
subject to the guidelines to be issued by the DOH in coordination
with the PhilHealth;

“(f) the DOH shall administer free vaccination against the
influenza virus and pneumococcal disease for indigent senior
citizen patients;

“(g) educational assistance to senior citizens to pursue
secondary, tertiary, post tertiary, vocational and technical
education, as well as short-term courses for retooling in both
public and private schools through provision of scholarships,
grants, financial aids, subsidies and other incentives to qualified
senior citizens, including support for books, learning materials,


and uniform allowances, to the extent feasible: Provided, That
senior citizens shall meet minimum admission requirements;

"(h) to the extent practicable and feasible, the continuance of the
same benefits and privileges given by the Government Service
Insurance System (GSIS), the Social Security System (SSS) and
the PAG-IBIG, as the case may be, as are enjoyed by those in
actual service;

(i) retirement benefits of retirees from both the government and
the private sector shall be regularly reviewed to ensure their
continuing responsiveness and sustainability, and to the extent
practicable and feasible, shall be upgraded to be at par with the
current scale enjoyed by those in actual service;

"@) to the extent possible, the government may grant special
discounts in special programs for senior citizens on purchase of
basic commodities, subject to the guidelines to be issued for the
purpose by the Department of Trade and Industry (DT!) and the
Department of Agriculture (DA);

“(k) Provision of express lanes for senior citizens in all
commercial and government establishments; in the absence
thereof, priority shall be given to them; and

"() death benefit assistance of a minimum of Five thousand
pesos (Php5,000.00) shall be given to the nearest surviving
relative of a deceased senior citizen which amount shall be
subject to adjustments due to inflation in accordance with the
guidelines to be issued by the DSWD.

"In the availment of the privileges mentioned above, the senior
citizen, or his/her duly authorized representative, may submit as
proof of his/her entitled thereto any of the following:

"(1) an identification card issued by the Office of the Senior
Citizen Affairs (OSCA) of the place where the senior citizen
resides: Provided, That the identification card issued by the
particular OSCA shall be honored nationwide;

"(2) the passport of the senior citizen concerned; and

"(3) other documents that establish that the senior citizen is a
citizen of the Republic and is at least sixty (60) years of age as
further provided in the implementing rules and regulations.

"In the purchase of goods and services which are on promotional
discount, the senior citizen can avail of the promotional discount
or the discount provided herein, whichever is higher.


"The establishment may claim the discounts granted under
subsections (a) and (c) of this section as tax deduction based on
the cost of the 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 (NICR), as amended."

SECTION 2. Section 5 of RA 9994 amending Section 5 of the
Republic Act 7432 as amended, is hereby further amended to read as
follows:

"SEC. 5, Government Assistance, - The government shall provide
the following:

"(a) Employment

"Senior citizens who have the capacity and desire to work, or be
re-employed, shall be provided information and matching
services to enable them to be productive members of society.
Terms of employment shall conform with the provisions of the
Labor Code, as amended, and other laws, rules and regulations.

"Private entities that will employ senior citizens as employees,
upon the effectivity of this Act, shall be entitled to an additional
deduction from their gross income, equivalent to fifteen percent
(15%) of the total amount paid as salaries and wages to senior
citizens, subject to the provision of Section 34 of the NIRC, as
amended: Provided, however, That such employment shall
continue for a period of at least six (6) months: Provided, further,
That the annual income of the senior citizen does not exceed the
latest poverty threshold as determined by the National Statistical
Coordination Board (NSCB) of the National Economic and
Development Authority (NEDA) for that year.

"The Department of Labor and Employment (DOLE), in
coordination with other government agencies such as, but not
limited to, the Technology and Livelihood Resource Center
(TLRC) and the Department of ‘Trade and Industry (DTI), shall
regularly assess, design and implement training programs that
will provide skills and welfare or livelihood support for senior
citizens,


"(b) Education

"The Department of Education (DepED), the Technical Education
and Skills Development Authority (TESDA) and the Commission
on Higher Education (CHED), in consultation with
nongovernmental organizations (NGOs) and __ people's
organizations (POs) for senior citizens, shall institute programs
that will ensure access to formal and nonformal education,

"(c) Health

“The DOH, in coordination with local government units (LGUs),
NGOs and POs for senior citizens, shall institute a national
health program and shall provide an integrated health service for
senior citizens. It shall train community-based health workers
among senior citizens and health personnel to specialize in the
geriatric care and health problems of senior citizens.

"The national health program for senior citizens shall, among
others, be harmonized with the National Prevention of Blindness
Program of the DOH.

“Throughout the country, there shall be established a "senior
citizens’ ward" in every government hospital. This geriatric ward
shail be for the exclusive use of senior citizens who are in need of
hospital confinement by reason of their health conditions.
However, when urgency of public necessity purposes so require,
such geriatric ward may be used for emergency purposes, after
which, such "senior citizens’ ward" shall be reverted to its nature
as geriatric ward.

"(d) Social Services

"At least fifty percent (50%) discount shall be granted on the
consumption of electricity, water, and telephone by the senior
citizens center and residential care/group homes that are
government-run or non-stock, non-profit domestic corporation
organized and operated primarily for the purpose of promoting
the well-being of abandoned, neglected, unattached, or homeless
senior citizens, subject to the guidelines formulated by the
DSWD.

"(1) "self and social enhancement services" which provide senior
citizens opportunities for socializing, organizing, creative
expression, and self-improvement;

"(2) “after care and follow-up services" for citizens who are
discharged from the homes or institutions for the aged,
especially those who have problems of reintegration with family


and community, wherein both the senior citizens and their
families are provided with counseling;

"(3) "neighborhood support services" wherein the community or
family members provide care-giving services to their frail, sick, or
bedridden senior citizens; and

"(4) "substitute family care " in the form of residential care or
group homes for the abandoned, neglected, unattached or
homeless senior citizens and those incapable of self-care.

"(e) Housing

"The national government shall include in its national shelter
program the special housing needs of senior citizens, such as
establishment of housing units for the elderly.

"() Access to Public Transport

"The Department of Transportation and Communications (DOTC)
shall develop a program to assist senior citizens to fully gain
access to public transport facilities.

"(g) Incentive for Foster Care

"The government shall provide incentives to individuals or
nongovernmental institution caring for or establishing homes,
residential communities or retirement villages solely for, senior
citizens, as follows:

"(1) realty tax holiday for the first five (5) years starting from the
first year of operation; and

(2) priority in the construction or maintenance of provincial or
municipal roads leading to the aforesaid home, residential
community or retirement village.

"(h) Additional Government Assistance
"(1) Social Pension

"Indigent senior citizens shall be entitled to a monthly stipend
amounting to One Thousand pesos (Php1000.00) to augment
the daily subsistence and other medical needs of senior citizens,
subject to a review every two (2) years by Congress, in
consultation with the DSWD.

"(2) Mandatory PhilHealth Coverage


"All indigent senior citizens shall be covered by the national
health insurance program of PhilHealth. The LGUs where the
indigent senior citizens resides shall allocate the necessary funds
to ensure the enrollment of their indigent senior citizens in
accordance with the pertinent laws and regulations.

(3) Social Safety Nets

"Social safety assistance intended to cushion the effects of
economics shocks, disasters and calamities shall be available for
senior citizens. The social safety assistance which shall include,
but not limited to, food, medicines, and financial assistance for
domicile repair, shall be sourced from the disaster/calamity
funds of LGUs where the senior citizens reside, subject to the
guidelines to be issued by the DSWD."

SECTION 3. All exemptions and discounts related to valued-
added tax (VAT) in the rate of twenty percent (20%) as mentioned
and prescribed in RA 9994 and its Implementing Rules shall be
increased to twenty five percent (25%) accordingly.

SECTION 4. Free Movie Passes. - In addition to the benefits
and subsidies already being granted by existing laws and rules and
regulations to the senior citizens, they shall also be given the
privilege to enter movie houses for free, without having to
purchase or secure a movie ticket provided that they present their
Senior Citizen’s Identification Card.

SECTION 5. Repealing Clause. - All laws, executive orders, rules and
regulations or any part thereof inconsistent herewith are deemed
repealed or modified accordingly.

SECTION 5. Separability Clause. - If any part or provision of this Act
shall be declared unconstitutional and invalid, such declaration shall
not invalidate other parts thereof which shall remain in full force and
effect.

SECTION 5. Effectivity Clause. - This Act shall take effect fifteen (15)

days following its publication in at least two (2) newspapers of general
circulation.

APPROVED.