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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4668

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

EXPLANATORY NOTE

Studies estimate that a quarter of all Filipino families live in poverty. For the poorest
Filipinos, eating three times a day is already a struggle'—making going to school a luxury
when it is actually a right.

The Universal Access to Tertiary Education Act helped equalize access to tertiary
education by institutionalizing free tuition in state-owned colleges and universities.

But tuition fees are not the only expenses that students and their parents must shoulder.
They will also need to pay for food, medicine, and books—the costs of which the poorest
Filipino families may struggle to meet. Hence, this measure, which seeks to help the poorest
Filipinos go to school.

This proposed measure hopes to achieve its goal through two means:
FIRST. By providing underprivileged students a discount of 5% when they
buy books, medicine, and food, which discounts may be claimed by
establishments as tax deductions; and

SECOND. By providing means by which government agencies can
implement the provisions of this proposed measure.

Thus, the needs of the poorest Filipino students compel this Congress to pass this
social legislation in helping more Filipinos raise themselves from poverty through education.

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“Education is the key to ending poverty” because itis through education that the poorest
Filipinos could unlock for themselves a better future.

In view of the foregoing, the passage of this bill in the 18 Congress is earnestly sought.

—

a
ISTINO ‘INNO’ A. DY V


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4668

HOUSE BILL

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

AN ACT
GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES TO
UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE
ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS

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

SEC. 1. Short Title. — This Act shall be known as the "Underprivileged Students’
Discount Act of 2019."

SEC. 2. Declaration of Policy. It is the policy of the State to prioritize quality education and
take appropriate steps to make such education accessible to all.

SEC. 3. Definition of Terms. — As used in this Act, the following terms shall mean:

(a) Underprivileged Student refers to a Filipino student enrolled in basic education,
post-secondary non-degree technical-vocational (Tech-Voc) courses, and those
enrolled in bachelor’s Degree Programs at the college level, whose parents have a gross
annual income of not more than One Hundred Fifty Thousand Pesos (P150,000.00),
subject to review by the National Economic and Development Authority (NEDA) every
three years: Provided, That a Filipino student who opts to take part-time jobs to
subsidize the student's education and whose income combined with the annual gross
income of the student's parents do not exceed One Hundred Fifty Thousand Pesos


(P150,000,00), subject to review by the NEDA every three (3) years, is deemed an
Underprivileged Student;

(b) Discounts refer to an amount deducted or counted off from the cost of goods under
basic services and from fees to be collected on education services;

(©) Basic Services refer to basic necessities such as food for snacks and meals and
medicines; and (d) Education Services refer to education-related expenditures such as
tuition, miscellaneous and other school fees, books, and school supplies.

SEC. 4. Discounts for Underprivileged Students. — Underprivileged students shall be entitled
to the following:

(@)

(b)

@

On Food Establishments - A five percent (5%) discount shall be granted to
underprivileged students by food establishments such as food chains, canteens and
restaurants anywhere in the country: Provided, That private food establishments may
claim the cost as allowable tax deduction from the gross income in the computation of
the income tax in accordance with the provisions of the National Internal Revenue
Code (NIRC) of 1997, as amended;

On Medicines - A five percent (5%) discount shall be granted to underprivileged
students by pharmacies or drug stores anywhere in the country: Provided, That these
pharmacies or drug stores may claim the cost as allowable tax deduction from the gross
income in the computation of the income tax in accordance with the provisions of the
NIRC of 1997, as amended;

On Textbooks and School Supplies - A five percent (5%) discount shall be granted to
underprivileged students by establishments anywhere in the country that sell reference
books and school supplies: Provided, That these establishments may claim the cost as
allowable tax deduction from the gross income in the computation of the income tax
in accordance with the provisions of the NIRC of 1997, as amended; and

On Tuition Fees, Miscellaneous, and Other School Fees - A five percent (5%) discount

shall be granted to underprivileged students by public and private schools where they

are enrolled in, without prejudice to their right to avail themselves of other educational
2


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assistance given by the school and the government, such as those provided under
Republic Act No. 6728, as amended by Republic Act No. 8545 or the “Government
‘Assistance to Students and Teachers in Private Education (EGASTPE)”, Republic Act
No. 9442 or the law amending the "Magna Carta for the Disabled”, Republic Act No.
10687 or the “Unified Student Financial Assistance System for Tertiary Education
(UniFAST)”, and Republic Act No. 10931 or the “Universal Access to Quality
Tertiary Education (UAQTE) Act”: Provided, That the schools may claim the cost as
allowable tax deduction from the gross income in the computation of the income tax
in accordance with the provisions of the NIRC of 1997, as amended.

On Museums, Theaters, and Cultural Events - A five percent (5%) discount shall be
granted to underprivileged students on entrance fees to museums, theaters, and cultural
events sanctioned by the National Commission on Culture and Arts anywhere in the
country: Provided, That private museums, theaters and producers of cultural events
may claim the cost as allowable tax deduction from the gross income in the
computation of the income tax in accordance with the provisions of the NIRC of 1997,
as amended.

SEC. 5. Limitations. — The Department of Education (DepEd), Technical Education and Skills
Development Authority (TESDA), and Commission on Higher Education (CHED) may
identify grounds for disqualification of students in availing the aforementioned discounts, in
accordance with the implementing rules and regulations of this Act: Provided, That these

grounds will not defeat the purpose of liberally granting such discounts to underprivileged
students.

SEC. 6. Roles of DepEd and CHED. ~ Qualified primary and secondary students, and tertiary
or college beneficiaries, shall be determined by DepEd and CHED, respectively. These
agencies shall have the following functions:

To plan, implement, and monitor yearly work programs, evaluate and submit annual
reports in pursuance to the objectives of this Act;

To screen applicants, receive documentary proof, and identify who are the eligible
underprivileged primary, secondary and college students based on the provisions of this
Act;


(©) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged primary, secondary and college
students, respectively;

(@) To issue identification cards which shall be valid anywhere in the country as proof of
the eligibility of the underprivileged primary, secondary and college students to avail
themselves of the discounts;

(c) To maintain and regularly update, on a quarterly basis, the list of underprivileged
primary, secondary, and college students who avail themselves of the discounts;

(®) To cancel the identification cards issued for those disqualified under Section 5 of this
Act;

(g) To provide information to the affected establishments under Section 4 of this Act for
any questions regarding the eligibility of any underprivileged primary, secondary and
college students claiming the discounts through the DepEd and CHED websites,
respectively;

(h) To monitor the extent of implementation of this Act and to coordinate with the
concerned agencies regarding the imposition of penalties on violators of this Act; and

(i) To perform such other functions as may be determined by the DepEd Secretary and
CHED Chairperson.

SEC. 7. Role of TESDA. - The TESDA shall be in charge of determining the qualified post-
secondary tech-voc beneficiaries under this Act through its Office of Technical-Vocational
Education and Training (TVET) Systems Development Office (TSDO). The TESDA Director-
General shall include in the regular functions of the TSDO the following additional functions:

(a) To plan, implement, and monitor work programs, evaluate and submit annual reports
in pursuance of the objectives of this Act;

(b) To screen applicants, receive documentary proof, and identify who are the eligible
underprivileged post-secondary students based on the provisions of this Act;

(©) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged post-secondary students;

(@) To issue identification cards which shall be valid anywhere in the country as proof of
the eligibility of the underprivileged post-secondary students to avail themselves of the
discounts;


(©) To maintain and regularly update, on a quarterly basis, the list of underprivileged post-
secondary students who avail themselves of the discounts and to review, evaluate and
assess their academic standing;

(f) To cancel the identification cards issued for those disqualified under Section 5 of this
Act;

(g) To provide information to the affected establishments under Section 4 of this Act for
any questions regarding the eligibility of any underprivileged post-secondary students
claiming the discounts through the TESDA website;

(h) To monitor the extent of implementation of this Act and to coordinate with the
concerned agencies regarding the imposition of penalties on violators of this Act; and

(® To perform such other functions as may be determined by the TESDA Director-General
in the implementation of this Act.

SEC. 8. Tax Incentives. — Discounts granted by establishments to underprivileged students
under this Act shall be treated as allowable deduction from the gross income in the computation
of the income tax, in accordance with the provisions of NIRC of 1997, as amended.

SEC. 9. Implementing Rules and Regulations. - The DepEd, TESDA, and CHED, in
coordination with the NEDA, the Department of Social Welfare and Development (DSWD),
the Department of Health (DOH), the Department of Trade and Industry (DT1), Department of
Finance (DOF), and such other agencies concerned with the establishments which may be
affected by this Act, shall issue the implementing rules and regulations to carry out the
objectives of this Act within thirty (30) days after this law takes effect.

SEC. 10. Penalties. —The first violation of any provisions of this Act shall cause the suspension
of the license to operate or the business permit of the establishment or person concerned for
not less than one (1) week but not more than four (4) weeks and a fine of not less than Twenty
Thousand Pesos (P20,000.00) but not more than Fifty Thousand Pesos (P50,000.00).

The second violation of any provisions of this Act shall cause the suspension of the
license to operate or the business permit of the establishment or the person concerned for not
less than four (4) weeks and a fine of not less than Fifty Thousand Pesos (P50,000.00), but not
exceeding Two Hundred Fifty Thousand Pesos (P250,000.00): Provided, however, That the


procedure of notice and hearing shall have been complied with prior to the imposition of the
said penalties.

If the offender is a corporation, organization or any similar entity, the officers thereof
shall suffer the same penalty imposed on any person found violating this Act.

SEC. 11. Enforcement. — Pursuant hereto, the DepEd, DTI, DOH, and local government units
(LGUs), in coordination with the CHED and TESDA, shall have the mandate to implement the
provisions of this Act. After filing of an appropriate complaint, and after due notice and
hearing, the proper authorities may also cause the cancellation or revocation of the business
permit, permit to operate, franchise and other similar privileges granted to any business entity
that fails to abide by the provisions of this Act.

SEC. 12. Separability Clause. — If any provision or part thereof is held invalid or
unconstitutional, the other sections or provisions thereof shall not be affected thereby and shall
remain in force and effect.

SEC. 13. Repealing Clause. — All laws, executive orders, decrees, instructions, rules and
regulations contrary to or inconsistent with any provision of this Act are hereby amended,

repealed or modified accordingly.

SEC. 14. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,