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rT omate 30 JUN 2075
Republic of the Philippines a
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 428

Introduced by REP. RODOLFO “OMPONG” M. ORDANES

AN ACT ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS:
AND SERVICES OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES

EXPLANATORY NOTE

Those who have less in life shall have more in law. Therefore, this proposed measure
seeks to grant Senior Citizens (SCs) and Persons with Disabilities (PWDs) a twenty
percent (20%) discount and exemption from the value-added tax, in addition to any
prevailing promotional offers or discounts extended by business establishments. This
discount shall be applied upon presentation of a valid identification card verifying
their status as an SC or PWD.

This bill is the result of five (5) joint deliberations of the Committee on Ways and
Means, the Committee on Senior Citizens, and the Special Committee on Persons with
Disabilities. These discussions were conducted as part of their motu proprio inquiry,
in aid of legislation, into the implementation gaps regarding Republic Act No. 7432,
as amended, otherwise known as the “Expanded Senior Citizens Act of 2003,” and
Republic Act No. 7277, as amended, otherwise known as the “Magna Carta for
Persons with Disability,” and policies that provide discounts, incentives, and tax
exemptions for SCs and PWDs.


Based on reports gathered during the Joint Committee deliberations, there are cases
where business establishments claim that their goods and services are on promotion,
thereby denying the mandated 20% discount for SCs and PWDs. They often cite the
provision prohibiting double-discount. However, SCs and PWDs have the right to
choose between the promotional discount and the discount rate provided by law, as
they may deem more favorable, Furthermore, business establishments cannot simply
invoke promotional discounts, especially in the absence of DTI approval as evidenced
by permits issued to the applicant-business establishment.

Given the foregoing, this bill aims to clarify that the discounts for SCs and PWDs
should remain applicable even when promotional offers are available. Ensuring this,
we uphold the preferential benefits these vulnerable sectors deserve. Moreover, it
addresses their evolving needs and challenges by enhancing the existing discount
privileges provided to them and offering them greater financial relief to cope with

rising expenses and medical costs.

This measure was approved on Third and Final Reading by the House of
Representatives and has been transmitted to the Senate in the 19th Congress.

As such, the passage of this bill is earnestly sought.

RODOLEFO “O) ” M. ORDANES


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

428

HOUSE BILL NO.

Introduced by REP. RODOLFO “OMPONG” M. ORDANES:

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 the 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.

SEC. 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


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Citizens Act,” as amended, and Section 32 of RA 7277, otherwise known as “Magna
Carta for 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.

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 7432, as amended,
and Section 32 of RA 7277, as amended.

SEC. 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 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 7432, as amended, and subsection (a), paragraphs (1), (2), (3),
(©), ©), (7) and (8) and subsection (d) of Section 32 of RA 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.

SEC. 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.

SEC. 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.


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SEC. 6. Repealing Clause. - The pertinent provisions of the following laws are
hereby repealed, amended, or modified accordingly:

(a) Section 4 of RA 7432, as amended by RA 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; and

(b) Section 32 of RA 7277, as amended by RA 10754, insofar as higher discount
granted by the commercial establishment, other existing laws or in combination
with other discount programs is concerned;

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.

SEC. 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,