Republic of the Philippine 
SENATE OF THE PHILIPPINES 
Pasay City 
SIXTEENTH CONGRESS 
Second Regular Session 
Senate Bill No. 2385 
-", 
,~, 
1-1 " 
. ':1 
"" . ,.' 
-' ((J;)I\;' tli !l1/,' ~i., cr.-1M ~ 
.':; 
~EP -3 PI :()3 
INTRODUCED ElY SENATOR JUAN EDGARDO "SONNY" M. ANGARA 
AN ACT 
GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES TO 
UNDERPRIVILIEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE 
ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS 
EXPLANATORY NOTE 
The 1987 Constitution provides that the State shall establish and maintain a 
system of scholarship grants, student loan programs, and provide other incentives 
which shall be made available to deserving students, especially to the 
underprivileged, enrolled in both public and private higher education institutions and 
technical-vocational institutes. 
However, not all deserving and underprivileged students who were able to 
get scholarships, grants or loans get to finish their education because they lack the 
financial capacity to spend for their basic needs or other expenses related to their 
schooling. 
To ease the financial burden of underprivileged students and help them cope 
with the high cost of education and daily school expenses, this measure proposes 
to grant discounts on basic services, such as food and medicine. Moreover, it also 
seeks to give them discounts on educational expenses, such as tuition, 
miscellaneous and other school fees, including books and school supplies. 
Considering that we now have a law giving discounts to senior citizens, it is 
high time that we consider the plight of our underprivileged students who are our 
nation's future. 
In view of the foregoing reasons, immediate approval of this measure is 
eamestly sought 
ANGARA 


16th CONGRESS OF THE PHILIPPINES 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
S. B. No. 2385 
Introduced by SENATOR SONNY ANGARA 
AN ACT 
-i, 
" n;~ , , 
:', -; I(l;j ~ 1 ,I Illf:;' 
fd!U'~ 
'4 SEP -3 Pl :03 
,n,', HI ,I' gy .. _~'. 
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: 
1 
SECTION 1. Shont Title. - This Act shall be known as the "Underprivileged 
2 
Students' Discount Act of 2014. " 
3 
4 
SEC. 2. Declarati()n of Policy. It is the policy of the State to prioritize quality 
5 
education and take appropriate steps to make such education accessible to all. 
6 
7 
SEC. 3. Definition of Terms. As used in this Act, the following terms shall 
8 
mean: 
9 
10 
(a) Underprivileged Student refer to a Filipino student enrolled in 
basic 
11 
education, post-secondary non-degree technical-vocational (Tech-Voc) 
12 
courses, and those enrolled in Bachelor's Degree Programs at the college 
13 
level, whose parents have a gross annual income of not more than One 
14 
Hundred Fifty Thousand Pesos (P150,000.00), subject to review by the 
15 
National Economic and Development Authority (NEDA) every three years; 
16 
provided that a Filipino student who opts to take parl-time jobs to subsidize 
17 
the student's education and whose income combined with the annual gross 
18 
income of the student's parents do not exceed One Hundred Fifty Thousand 
19 
Pesos (P150,000.00), subject to review by the NEDA every three (3) years, 
20 
is deemed an Underprivileged Student; 
21 
22 
(b) Discounts refer to an amount deducted or counted off from the cost of goods 
23 
under basic services and from fees to be collected on education services; 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
(c) Basic Servicos 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: 
34 
(a) On Food Establishments. - A five percent (5%) discount shall be granted to 
35 
underprivileged students by food establishments such as food chains, 
36 
canteens and restaurants anywhere in the country: Provided, That private 
37. 
food establishments may claim the cost as allowable tax deduction from the 


1 
gross income in the computation of the income tax in accordance with the 
2 
provisions of the National Internal Revenue Code of 1997, as amended; 
3 
4 
(b) On Medicines. -
A five percent (5%) discount shall be granted to 
5 
underprivileged students by pharmacies or drug stores anywhere in the 
6 
country: Provided, That these pharmacies or drug stores may claim the cost 
7 
as allowable tax deduction from the gross income in the computation of the 
8 
income tax in accordance with the provisions of the National Internal 
9 
Revenue Code (NIRC) of 1997, as amended; 
10 
11 
(c) On Textbooks and School Supplies. - A five percent (5%) discount shall be 
12 
granted to underprivileged students by establishments anywhere in the 
13 
country that sell reference books and school supplies: Provided, That these 
14 
establishments may claim the cost as allowable tax deduction from the gross 
15 
income in the computation of the income tax in accordance with the 
16 
provisions of the NIRC of 1997, as amended; and 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
(d) 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 assistance given by the school and the 
, 
government, such as the "Study Now, Pay Later Plan" under Republic Act 
No. 6728, "Discounts to Disabled Students" under RA No. 9442 or the law 
amending the "Magna Carta for the Disabled": 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. 
29 
(e) On Museums, Theaters and Cultural Events - A five percent (5%) discount 
30 
shall be granted to underprivileged students on entrance fees to museums, 
31 
theaters, and cultUral events sanctioned by the National Commission on 
32 
Culture and Arts anywhere in the country: Provided, That private museums, 
33 
theaters and producers of cultural events may claim the cost as allowable tax 
34 
deduction from the gross income in the computation of the income tax in 
35 
accordance with the provisions of the NIRC of 1997, as amended; 
36 
37 
38 
SEC. 5. Limitations. The DepEd, TESDA and CHED may identify grounds for 
39 
disqualification of students in availing the aforementioned discounts, in 
40 
accordance with the implementing rules and regulations of this Act. Provided, 
41 
that these grounds will not defeat the purpose of liberally granting such discounts' 
42 
to underprivileged students. 
43 
44 
45 
SEC. 6. Roles of the DepEd and CHED. Qualified primary and secondary 
46 
students, and tertiary or college beneficiaries, shall be determined by the 
47 
Department of Education (DepEd) and the Commission on Higher Education 
48 
(CHED), respectively. Both agencies shall have the following functions: 
49 
50 
(a) To plan, implement and monitor yearly work programs, evaluate and submit 
51 
annual reports in pursuance to the objectives of this Act; 
52 
53 
(b) To screen applicants, receive documentary proof, and identify who are the 
54 
eligible underprivileged primary, secondary and college students based on 
55 
the provisions of this Act; 
56 


· " 
1 
2 
(C) To closely coordinate with the NEDA in determining the income brackets of 
3 
Filipino families for the purpose of identifying underprivileged primary, 
4 
secondary and college students, respectively; 
5 
6 
(d) To issue identification cards which shall be valid anywhere in the country as 
7 
proof of the eligibility of the underprivileged primary, secondary and college 
8 
students to avail themselves of the discounts; 
9 
10 
(e) To maintain and regularly update, on a quarterly basis, the list of 
11 
underprivileged primary, secondary and college students who avail 
12' 
themselves of the discounts; 
13 
14 
(f) To cancel the identification cards issued for those disqualified under Section 
15 
5 of this Act; 
16 
17 
(g) To provide information to the affected establishments under Section 4 of this 
18 
Act for any questions regarding the eligibility of any underprivileged primary, 
19 
secondary and college students claiming the discounts through the DepEd 
20 
and CHED websites, respectively; 
21 
22 
(hl To monitor the extent of implementation of this Act and to coordinate with the 
23 
concerned agencies regarding the imposition of penalties on violators of this 
24 
Act; and 
: 
25 
26 
(i) To perform such other functions as may be determined by the DepEd 
27 
Secretary and CHED Chairperson, 
28 
29 
SEC. 7. Role of the TESDA. The TESDA shall be in charge of determining the 
30 
qualified post-secondary tech-voc beneficiaries under this Act through its Office 
31 
of Technical-Vocational Education and Training (TVET) Systems Development 
32 
Office (TSDO), The TESDA Director-General shall include in the regular 
33 
functions of the TSDO the following additional functions: 
34 
35 
(a) To plan, implement and monitor work programs, evaluate and submit 
36 
annual reports in pursuance of the objectives of this Act; 
37 
38 
(b) To screen applicants, receive documentary proof, and identify who are the 
39 
eligible underprivileged post-secondary students based on the provisions of 
40 
this Act; 
41 
42 
(c)To closely coordinate with the NEDA in determining the income brackets of 
43 
Filipino families for the purpose of identifying underprivileged post-secondary 
44 
students; 
45 
46 
(d) To issue identification cards which shall be valid anywhere in the country 
47 
as proof of the eligibility of the underprivileged post-secondary students to 
48 
avail themselves of the discounts; 
49 
50 
(e)To maintain and regularly update, on a quarterly basis, the list of 
5i 
underprivileged post secondary students who avail themselves of the discounts 
52 
and to review, evaluate and asses their academic standing; 
53 
54 
(f) To cancel the identification cards issued for those disqualified under 
55 
Section 5 of this Act; 
56 
57 
(g) To provide information to the affected establishments under Section 4 of 


1 
this Act for any questions regarding the eligibility of any underprivileged 
2 
post-secondary students claiming the discounts through the TESDA 
3 
website; 
4 
5 
(h) To monitor the extent of implementation of this Act and to coordinate with 
6 
the concemed agencies regarding the imposition of penalties on violators of 
7 
this Act; and, 
8 
9 
(i)To perform such other functions as may be determined by the TESDA 
10 
Director-General in the implementation of this Act. 
11 
12 
SEC. 8. Tax Incentives. Discounts granted by establishments to underprivileged 
13 
students under this Act shall be treated as allowable deduction from the gross 
14 
income in the computation of the income tax, in accordance with the provisions 
15 
of the National Internal Revenue Code of 1997, as amended. 
16 
17 
SEC. 9. Implementing Rules and Regulations. The DepEd, CHED and 
18 
TESDA, in coordination with the NEDA, the Department of Social Welfare and 
19 
Development (DSWD), the Department of Health (DOH), the Department of 
20 
Trade and Industry (DTI), Department of Finance (DOF), and such other 
21 
agencies concerned with the establishments which may be affected by this Act, 
22 
shall issue the implementing rules and regulations to carry out the objectives of 
23 
this Act within thirty (30) days after this law takes effect. 
24 
25 
SEC. 10. Penalties. The first violation of any provisions of this Act shall cause 
26 
the suspension of the license \0 operate or the business permit of the 
27 
establishment or person concerned for not less than one (1) week but not more 
28 
than four (4) weeks and a fine of not less than Twenty Thousand Pesos 
29 
(P20,000.00) but not more than Fifty Thousand Pesos (P50,000.00). 
30 
31 
The second violation of any provisions of this Act shall cause the suspension 
32 
of the license to operate or the business permit of the establishment or the person 
33 
concerned for not less than four (4) weeks and a fine of not less than Fifty 
34 
Thousand Pesos (P50,000.OO), but not exceeding Two Hundred Fifty Thousand 
35 
Pesos (P250,OOO.OO): Provided, however, that the procedure of notice and 
36 
hearing shall have been complied with prior to the imposition of the said 
37 
penalties. 
38 
39 
If the offender is a corporation, organization or any similar entity, the officers 
40 
thereof shall suffElr the same penalty imposed on any person found violating this 
41 
Act. 
42 
43 
SEC. 11. Enforcement. Pursuant hereto, the DepEd, DTI, DOH, and local 
44 
government units (LGUs), in coordination with the CHED and TESDA, shall have 
45 
the mandate to implement the provisions of this Act. After filing of an appropriate 
46 
complaint, and after due notice and hearing, the proper authorities may also 
47 
cause the cancellation or revocation of the business permit, permit to operate, 
48 
franchise and other similar privileges granted to any bUSiness entity that fails to 
49 
abide by the provisions of this Act. 
50 
51 
SEC. 12. Separability Clause. If any proVision or part thereof is held invalid or 
52 
unconstitutional, the other sections or provisions thereof shall not be affected 
53 
thereby and shall remain in force and effect. 
54 
55 
SEC. 13. Repealing Clause. All laws, executive orders, decrees, instructions, 
56 
rules and regUlations contrary to or inconsistent with any provision of this Act are 
57 
hereby amended, repealed or modified accordingly. 


1 
2 
SEC. 14. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
3 
publication in the Official Gazette or in a newspaper of general circulation. 
4 
5 
Approved,