FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Article 11, Section 9 of the Constitution provides that the State shall promote a just 
and dynamic social order that will ensure the prosperity and independence of the nation and 
free the people from poverty through policies that provide adequate social services, promote 
full employment, a rising standard of living, and an improved quality of life for all. 
Pursuant to such mandate, Republic Act No. 9257, otherwise known as the 
Expanded Senior Citizens Act of 2003, was enacted to ease the burden on senior citizens in 
their purchase of goods and services, availment of medical and dental services, transport 
fare, and funeral and burial services, among others. Under the law, senior citizens are. 
granted a twenty percent (20%) discount privilege on these purchases, to allow them to 
maximize their resource-spending. 
On May 24, 2005, however, upon the enactment of Republic Act No. 9337, or the 
Expanded Value Added Tax (EVAT) Law, a value-added tax equivalent to ten percent (10%) 
of the gross selling price or gross value in money of the goods or properties, was levied, 
assessed and collected every sale, barter or exchange of goods or properties. This was 
later increased to twelve percent (12%) in the year 2006, thus, the discount privilege 
granted to the elderly has been effectively diminished. The net effect is that senior citizens 
now enjoy only an 8% discount. 
This bill addresses this discrepancy and seeks to exempt senior citizens from the 
Expanded Value Added Tax on the sale of goods and services that has prevented them from 
fully enjoying the benefits intended by law. In order to assist senior citizens in the twilight of 
their life and enhance their opportunities to engage in productive endeavors, the passage of 
this bill is earnestly sought. 
Senator 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Third Regular Session 
) 
Introduced by Senator Richard J. Gordon 
AN ACT 
EXEMPTING FROM THE EXPANDED VALUE ADDED TAX THE SALE OF 
GOODS AND SERVICES TO SENIOR CITIZENS, AMENDING FOR THE PURPOSE 
REPUBLIC ACT NO. 9257, OTHERWISE KNOWN AS THE 
"EXPANDED SENIOR CITIZENS ACT OF 2003" 
Be if enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Section 4 of Republic Act No. 9257 is hereby amended to read 
as follows: 
SEC. 4. Privileges for the Senior Citizens. - The senior citizens shall 
be entitled to the following: 
a) xxx xxx xxx 
The establishment may claim the discounts granted under (a), (9, (9) 
and (h) as tax deduction based on the net cost of the 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 value added tax 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. 
ANY 
PROVISION 
OF 
LAW 
TO 
THE 
CONTRARY 
NOTWITHSTANDING, THE SALE OF GOODS AND SERVICES TO 
SENIOR CITIZENS UNDER (A), (B), (F), (G) and (H) OF THIS 
SECTION SHALL BE EXEMPT FROM THE EXPANDED VALUE 
ADDED TAX AS PROVIDED UNDER THE NATIONAL INTERNAL 
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REVENUE CODE, AS AMENDED. 
xxx xxx xxx" 
Sec. 2. Repealing Clause. - All laws, orders, proclamations, rules and 
regulations, or part thereof, which are inconsistent with any provision of this Act are 
hereby repealed or modified accordingly. 
Sec. 3. €ffecfivify - This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or in at least two newspapers of general circulation. 
Approved, 
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