Republic of the Philippines \\ «p at:
HOUSE OF REPRESENTATIVE: Sy
Quezon City

SIXTEENTH CONGRESS
1* Regular Session

2
HOUSE BILL NO. © *' 223

Introduced by Citizens’ Battle Against Corruption (CIBAC) Party List
Representative Cinchona Cruz-Gonzales

EXPLANATORY NOTE

Education is a prerequisite in nation building. It enlightens the society and helps grow our
economy.

Article II, Section 13 of the Constitution states that the Philippines recognize the vital
role of the youth in nation-building. It also provides the State’s obligation to promote and protect
the physical, moral, spiritual, intellectual, and social well-being of the youth.

Furthermore, Article XIV, Section 1 and 2 of the Constitutions provides that,

Section 1. The State shall protect and promote the right of all citizens to quality
education at all levels, and shalll take appropriate steps to make such education accessible
toall.

Section 2. The State shall:

Xxx

2. xxx

3. Establish and maintain a system of scholarship grants, student loan programs, subsidies,
and other incentives which shall be available to deserving students in both public and
private schools, especially to the under-privileged;

4. xxx

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Despite the mechanisms and other programs already implemented by the govemment, still
many of the youth today fail to enter and finish college due to the rising cost of tuition fees, price
hike of commodities such as books and school supplies and low income rate of their
families. Several of them drop out of college due to failure to sustain their needs


Giving discounts “to underprivileged but deserving college students will encourage more
youth to enroll in the tertiary level of education and will help the State produce more graduates
‘who will eventually lead our country towards its goal.

To continue build our nation, there is a need to establish a strong support for education. It is
high time that the State take appropriate steps to make education accessible to all. The immediate
passage of the bill serves the intention of the constitution and implements its provisions.

Hon. cmalll bests

Representative, CIBAC Party List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
1* Regular Session

23
HOUSE BILL NO.

Introduced by Citizens’ Against Corruption (CIBAC) Party List
Representative Cinchona Cruz-Gonzales

AN ACT GRANTING DISCOUNTS TO UNDERPRIVILEGED COLLEGE
STUDENTS ON BASIC AND EDUCATION SERVICES

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

SECTION 1. Short Title. — This Act shall be known as the “Underprivileged College
Students’ Discounts Act”

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 have the
following meaning.

(a) Underprivileged college students refer to Filipino students enrolled in the tertiary
level whose parents have a gross annual income of not more than One
hundred thousand pesos (P100,000,00), subject to review by the National
Economic and Development Authority (NEDA) every three (3) years. These
also include Filipino college students who opt to take part-time jobs to
subsidize their education and whose income combined with the annual gross
income of their parents do not exceed One hundred thousand pesos
(P100,000.00), subject to review by the NEDA every three (3) years.

(b) Discounts refer to the 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.

(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 College Students. — Underprivileged college
students shall be entitled to the following:

(a) On Food Establishments. — A five percent (5%) discount shall be granted to
underprivileged college 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 of
1997, as amended;

(b) On Medicines. ~ A five percent (5%) discount shall be granted to underprivileged
college 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 National Internal Revenue Code of 1997, as amended;

(c) On Textbooks and School Supplies. — A five percent (5%) discount shall be granted to
underprivileged college students by establishments anywhere in the country that sell
reference books for college 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 National Internal Revenue Code of
1997, as amended; and

(d) On Tuition Fees, Miscellaneous and Other School Fees. — A five percent (5%)
discount shall be granted to underprivileged college students by public and private
schools where they are enrolled anywhere in the country, without prejudice to their right
in availing 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:
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
National Internal Revenue Code of 1997, as amended.

SEC. 5. Limitations. — The right of any underprivileged college student to avail
himself/herself of the discounts under this Act shall not apply if.


(a) He/She fails for one (1) semester in the majority of the academic subjects in which
he/she has enrolled during the course of his/her study, unless such failure is due to
some valid cause beyond his/her control;

(b) He/She fails to finish his/her course within two (2) years after the year within which
he/she should have graduated;

(©) He/She stops schooling for one (1) school year, unless such is due to some valid
cause beyond his/her control; and

(d) He/She is convicted of any crime under the Revised Penal Code.

SEC. 6. Role of the Commission on Higher Education (CHED). — The CHED shall be in
charge of determining the qualified beneficiaries under this Act through its Office of Student
Services (OSS). The CHED Chairman shall include in the regular functions of the OSS the
following additional functions.

(a) To plan, implement and monitor yearly 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 college students based on the provisions of this Act;

(c) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged college students;

(d) To issue identification cards which shall be valid anywhere in the country as proof of
the eligibility of the 4underprivileged college students to avail themselves of the
discounts;

(e) To maintain and regularly update, on a quarterly basis, the list of underprivileged
college 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 question regarding the eligibility of any underprivileged college student claiming
the discounts through the CHED website;

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


(h) To perform such other functions as may be determined by the CHED Chairman in the
implementation of this Act.

SEC. 7. Tax Incentives. ~ Discounts granted by establishments to underprivileged college
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 the National Internal
Revenue Code of 1997, as amended.

SEC. 8. Implementing Rules and Regulations. — The 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 (DTI), the Department of Finance (DOF), and
such other agencies concemed 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 Act takes effect.

SEC. 9. Penalties. — The first violation of any provision of this Act shall cause the
suspension of the license to operate or the business permit of the establishment or the person
concemed 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 provision 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 official thereof
directly involved shall be held liable therefor.

SEC. 10. Enforcement. ~ Pursuant hereto, the DTI, the DOH and the local goverment
units (LGUs), in coordination with the CHED, are mandated 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. 11. Separability Clause. — If any provision or part hereof is held invalid or
‘unconstitutional, the other sections or provisions hereof shall not be affected thereby and shall
remain in force and effect.

SEC. 12. Repealing Clause. ~ All laws, executive orders, decrees, instructions, rules and
regulations contrary to or inconsistent with any provision of this Act is hereby amended,
repealed or modified accordingly.


SEC. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in any newspaper of general circulation.

Approved,