FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
-'fi~Cl'MI) [tv ~ _~ 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
Senate Bill No. 
584 
EXPLANATORY NOTE 
Medicines, including essehtial, life-saving ones, are priced way too steep 
beyond the reach of ordinary 'Filipinos. Since these are indispensable and 
relatively demand inelastic commodities - where fluctuations in price have little or 
no effect upon market demand - certain consumers are placed at a greater 
economic disadvantage and feel the burden of the increasing medicine prices 
more than others. As such, there is a need to rectify the situation and balance the 
inequity, in line with the constitutional policy giving the highest priority to the 
enactment of measures that reduce social inequalities, promote the availability of 
health services to people at an affordable cost, and prioritize the needs of the 
underprivileged and the elderly. . 
In view of this policy, this bill seeks to provide a sensible solution to the 
rising cost of medicines, making it more affordable and accessible to ordinary 
Filipinos, by granting a 20% discount, exempt from the twelve percent (12%) 
value-added tax imposed by Republic Act No. 9337, on the sale of medicine to 
government employees and indigents. 
In view of the foregoing, early passage of this bill is earnestly requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
GRANTING GOVERNMENT EMPLOYEES AND INDIGENTS A TWENTY 
PERCENT (20%) DISCOUNT ON THE SALE OF MEDICINES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Policy. - It is the policy of the State to adopt measures that 
reduce social inequality, promote the availability of health services to people at 
an affordable cost, and prioritize the needs of the underprivileged and elderly, 
SEC. 2. Discount on Medicines. - A twenty percent (20%) discount on 
the sale of medicines in all establishments, except Botika ng Bayan outlets, shall 
be granted to the following: 
(a) government employees; 
(b) indigents, as certified by the barangay where such indigent resides. 
SEC. 3. Exemption from Value-Added Tax. - The sale of medicines 
under section 2 of this Act shall be exempt from the Expanded Value Added Tax 
as provided under the National Internal Revenue Code, as amended. 
SEC. 4. Proof of Entitlement. - In availing of the discount mentioned in 
section 2 of this Act, the following documents shall serve as proof of entitlement: 
(a) For government employees, a valid government ID or their GSIS card; 
(b) For indigents, a barang.ay certificate of indigency. 
SEC. 5. Implementing Rules and Regulations.- The Department of 
Health, within sixty (60) days from the approval of this Act, shall promUlgate the 
implementing rules and regulations for the effective implementation of the 
provisions of this Act, in consultation and coordination with other concerned 
agencies and offices. 
SEC. 6. Repealing Clause. - All laws, decrees, orders, rules and 
regulations or other issuances or parts thereof inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
SEC. 7. Separability Clause. - If any portion or provision of this Act is 
declared unconstitutional, the remainder of this Act or any provision not affected 
thereby shall remain in force and effect. 
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SEC. 7. Separability Clause. - If any portion or provision of this Act is 
declared unconstitutional, the remainder of this Act or any provision not affected 
thereby shall remain in force and effect. 
SEC. 8. Effectivity. - This Act shall take effect after fifteen (15) days 
following the completion of its publication either in the Official Gazette or in a 
newspaper of general circulation in the Philippines. 
Approved,