Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO  
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
Republic Act No. 9994, or the “Expanded Senior Citizens Act of 2010,” and Republic 
Act No. 10754, which broaden the benefits for Persons with Disabilities (PWDs), entitle 
qualified individuals to a 20% discount and exemption from the value-added tax (VAT) on a 
wide range of essential goods and services. These include, but are not limited to, purchases 
of medicine, transportation, health services, admission to recreational venues, and funeral-
related costs. 
Despite these clear entitlements under the law, recent reports have revealed persistent 
challenges in their implementation. In January 2024, a legal case was filed against a hotel in 
Pasig City for refusing a senior citizen’s discount, citing the absence of a promotional permit 
as a reason to deny the benefit.1 In a separate case, a well-known coffeehouse chain drew 
public criticism after its policy reportedly restricted the discount to one drink and one food item 
per transaction for seniors and PWDs.2 These incidents highlight the need for greater clarity 
and protection in applying lawful discounts, particularly when business establishments run their 
own promotions. 
This legislation seeks to address these issues by reinforcing the right of senior citizens 
and PWDs to avail of the 20% discount and VAT exemption, on top of any existing promotional 
offers or in-store discounts. This ensures that their statutory benefits are not diluted or withheld 
due to marketing schemes or procedural loopholes. 
This bill was approved on third reading during the 19th Congress under House Bill No. 
10312, reflecting broad legislative support to reinforce the statutory rights of senior citizens and 
PWDs through clearer implementation and stronger consumer protection.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
1 Rita, J. (2024, January 14). Hotel officials charged for denying senior citizen’s discount. Philippine Daily Inquirer. 
https://newsinfo.inquirer.net/1888900/hotel-officials-charged-for-denying-senior-citizens-discount-criminal-case-filed-in-pasig-city 
2 BusinessWorld. (2024, January 15). Denied discounts to be probed. BusinessWorld. https://www.bworldonline.com/the-
nation/2024/01/15/569028/denied-discounts-to-be-probed
July 29, 2025
6:37 pm
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HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO  
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT 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.  
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.  
SECTION 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.   
SECTION 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 
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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.   
 
SECTION 4. Implementing Rules and Regulations. – The National Commission of Senior 
Citizens and the National Council on Disability Affairs, in consultation 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.   
 
SECTION 5. Separability Clause. – If any provision of this Act is declared invalid or 
unconstitutional, other provisions hereof which are not affected thereby shall remain in full force 
and effect.   
  
SECTION 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(l) 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.   
 
SECTION 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,