Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

RECEIVED
pate:_24 JUL 2016

twwe:__Y*

SEVENTEENTH CONGRESS
First Regular Session
REGISTRATION UNIT

HOUSE BILL No.__ 954 BILLS AND INDEX SERVICE

Introduced by : Honorable ROSENDA ANN OCAMPO

EXPLANATORY NOTE

The 1987 Philippine Constitution proclaims that the State values the dignity
of every human person and guarantees full respect for human rights.

It also mandates an integrated and comprehensive approach to make
essential goods, health and other social services available to all the people at
affordable cost with the priority for the needs of the underprivileged, sick, elderly,
disabled, women, and children.

These provisions have inspired the enactment of laws that provide social
political and economic opportunities for disadvantaged segments of Philippine
society, such as senior citizens and persons with disabilities (PWDs).

On March 24, 1992, a law that had a very comprehensive positive bias for
PWDs was enacted, Republic Act No.7277 otherwise known as “An Act Providing
for the Rehabilitation, Self-Development and Self-Reliance of Disable Persons.”

It was later amended on April 30, 2007 by Republic Act No. 9442, which
provides certain privileges and incentives to PWDs.

The approval on April 6, 2010 of Republic Act 10070 mandating all local
government units to adopt and establish social and structural mechanisms to serve
and promote the interest, rights and welfare of PWDs further amended RA 9442.

This bill seeks to amend Section 32 of RA 7277, as amended, by providing
PWDs with tax-exempt status from payment of Value-Added Tax (VAT) in
addition to the discount they are already enjoying for the classes of goods and
services enumerated under RA 9442

HOUSE OF REPRESENTATIVES



This is an equalizing measure because it will accord PWDs exactly the same
privilege enjoyed by senior citizens, who are exempted from the VAT by virtue of
RA 9994, By way of example, senior citizens presently enjoy a P20.00 discount or
the equivalent of 20% for every P100.00 value of good or service purchased by
them.

On the other hand, persons with disability effectively enjoy only P12.00 for
every P100.00 worth good or service because the law does not exempt them from
VAT, which is imposed on the net value of the good or service or 10% of the
P80.00 after deducting P20.00, representing the 20% discount granted in RA 9442
for every P100.00 worth of good or service purchased.

In view of the foregoing, approval of this bill is earnestly requested.

nyo ANN OCA)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 954

Introduced by : Honorable ROSENDA ANN OCAMPO

“AN ACT EXEMPTING PERSONS WITH DISABILITIES
(PWDs) FROM THE VALUE-ADDED TAX ON CERTAIN
GOODS AND SERVICES, AMENDING FOR THIS PURPOSE,
REPUBLIC ACT NO.7277, AS AMENDED, OTHERWISE
KNOWN AS THE “MAGNA CARTA FOR PERSONS WITH
DISABILITIES AND FOR OTHER PURPOSES”

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

SECTION 1. Section 32 of Republic Act No.7277, otherwise known as the
“Magna Carta for persons with Disability,” as amended, is hereby amended to read
as follows:

“SEC. 32. Persons with disabilities shall be entitled to the following:

“(a) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, from all establishments
relative to their utilization of all services in hotels and similar lodging
establishments, restaurants and recreation centers for the exclusive use or
enjoyment of persons with disabilities,

“(b) A minimum of twenty percent (20%) discount AND EXEMPTION FROM

THE VALUE-ADDED TAX (VAT), IF APPLICABLE, on admission fees
charged by the theaters, cinema house, concert halls, circuses, carnivals and other


“(c) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, on the purchase of medicines
in all drugstores for the exclusive use or enjoyment of persons with disabilities;

“(d) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, on medical and dental
services including diagnostic and laboratory fees such as, but not limited to x-rays,
computerized tomography scans and blood tests, in all government facilities,
subject to guidelines to be issued by the Department of Health (DOH), in
coordination with the Philippine Health Insurance corporation (PHILHEALTH);

“(e) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, on medical and dental
services including diagnostic and laboratory fees, and professional fees of
attending doctors in all private hospitals and medical facilities, in accordance with
the rules and regulations to be issued by the DOH, in coordination with the
PHILHEALTH;

“(f) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, in public railways, skyways
and bus fare for the exclusive use and enjoyment of persons with disabilities;

“(h) Educational assistance to persons with disabilities, for them to pursue primary,
secondary, tertiary, post tertiary, as well as vocational or technical education, In
both public and private schools, through the provision of the scholarships, grants,
financial aids subsidies and other incentives to qualified persons with disabilities,
including support for books, learning materials, and uniform allowance to the
extent feasible: Provided, that persons with disabilities shall meet minimum
admission requirements;

“(i) To the extent practicable and feasible, the continuance of the same benefits and
privileges given by the Government service Insurance System (GSIS), Social
Security System (SSS), and PAG-IBIG, as the case may be, as are enjoyed by
those in actual service;

“(j) To the extent possible, the government may grant special discounts in special
programs for persons with disabilities on purchase of basic commodities, subject to
guidelines to be issued for the purpose by the Department of Trade and Industry
(DTI) and the Department of Agriculture (DA); and

“(k) The above-mentioned privileges are available only to persons with disabilities
who are Filipino citizens upon submission of any of the following as proof of
his/her entitlement thereto: ,

(i) An identification card issued by the City or Municipal Mayor, the
Barangay Captain of the place where the person with disability resides;


(ii) The passport of the person with disability concerned; or

(iii) Transportation discount fare Identification Card (ID) issued by the
National Council for the Welfare of Disabled Persons (NCWDP).

The privileges may not be claimed if the person with disability claims a
higher discount as may be granted by the commercial establishment and/or under
other existing laws or in combination with other discount program/s.

The establishments may claim the discounts granted in sub-sections (a), (b),
(©), (f) and (g) as tax deductions based on the net cost of the goods sold or services
rendered: Provided, however, that the cost of the discount shall be allowed as
deduction from the 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 documentation and to
the provisions of the National Internal Revenue Code (NIRC), as amended.”

SECTION 2. The Department of Social Welfare and Development, the National
Council for the Welfare of Disabled Persons (NCWDP), the Department of Health
(DOH) and the Bureau of Internal Revenue (BIR), in consultation with the
concerned Senate and House committees and other agencies, organizations and
establishments shall formulate the Implementing Rules and Regulations pertinent
to this Act within six months after effectivity.

SECTION 30. This Act shall take effect fifteen (15) days after its publication in
the official Gazette or in two newspapers of general circulation in the Philippines.

APPROVED.