Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

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EIGHTEENTH CONGRESS
First Regular Session

1564

H.B. No.

introduced by HONORABLE ROMMEL RICO T. ANGARA

AN ACT
GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES TO
UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE ENROLLED
IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS

EXPLANATORY NOTE

The 1987 Constitution provides that the State shall establish and maintain a system
of scholarship grants, student loan programs, and provide other incentives which shall be
made available to deserving students, especially to the underprivileged.

While the passage of Republic Act No. 10931 or the “Universal Access to Quality
Tertiary Education Act” (also more popularly known as the “Free Tuition Law”) eases the
burden of Filipinos, the Commission on Higher Education said that tuition only comprised
30-40 percent of a family’s out-of-pocket education expenses.

According to the Philippine Statistics Authority, the Higher Education
(Baccalaureate) Enrollment for AY 2017-2018 is 2, 618, 756 but only 596, 257 graduated
or barely 22.77 percent of the total enrollees. Thus, even with the presence of a number
of laws granting discounts and free tuition, hardly a quarter of the college enrollees finish
their degrees due to lack of financial capacity to finance the daily school expenses.

To lessen the financial burden of the underprivileged students, this bill proposes
to grant discounts on basic services, such as food and medicine. Moreover, it also seeks
to give them discounts on educational expenses, such as tuition, miscellaneous, and other
school fees, including books and school supplies.

In view of the foregoing reasons, immediate approval of this measure is earnestly

sought.
romeo T. ANGARA
spresentative

Lone District, Province of Aurora


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EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

H. B. No. 1564

Introduced by HONORABLE ROMMEL RICO T. ANGARA

AN ACT
GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES TO
UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE ENROLLED
IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS

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 Students’
Discount Act of 2019."

Sec. 2. Declaration of Policy. - itis the
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 mean:

(a) Underprivileged Student refers to a Filipino student enrolled in basic education,
post-secondary non-degree technical-vocational (Tech-Voc) courses, and those enrolled

y of the State to prioritize quality education

in bachelor’s Degree Programs at the college level, whose parents have a gross annual
income of not more than One Hundred Fifty Thousand Pesos (P150,000.00), subject to
review by the National Economic and Development Authority (NEDA) every three years:
Provided, That a Filipino student who opts to take part-time jobs to subsidize the student's
education and whose income combined with the annual gross income of the student's
parents do not exceed One Hundred Fifty Thousand Pesos (P150,000.00), subject to
review by the NEDA every three (3) years, is deemed an Underprivileged Student;

(b) Discounts refer to an 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 meais and
medicines; and

(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 Students. - Underprivileged students shall be
entitled to the following:


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(a)

(0)

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(d)

(e)

On Food Establishments - A five percent (5%) discount shall be granted to
underprivileged 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 (NIRC) of 1997, as amended;

On Medicines - A five percent (5%) discount shall be granted to underprivileged
students by pharmacies or drug stores anywhere in the country: Provided, That
these pharmacies or drug stores may claim the cost as aliowabie tax deduction
from the gross income in the computation of the income tax in accordance with
the provisions of the NIRC of 1997, as amended;

‘On Textbooks and School Supplies - A five percent (5%) discount shall be granted
to underprivileged students by establishments anywhere in the country that sell
reference books 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 NIRC of
1997, as amended; and

On Tuition Fees, Miscellaneous, and Other Schoo! Fees - A five percent (5%)
discount shall be granted to underprivileged students by public and private
schools where they are enrolled in, without prejudice to their right to avail
themselves of other educational assistance given by the school and the
government, such as those provided under Republic Act No. 6728, as amended
by Republic Act No. 8545 or the “Government Assistance to Students and
Teachers in Private Education (EGASTPE)”, Republic Act No. 9442 or the law
amending the "Magna Carta for the Disabled", Republic Act No. 10687 or the
“Unified Student Financial Assistance System for Tertiary Education (UniFAST)”,
and Republic Act No. 10931 or the “Universal Access to Quality Tertiary Education
(UAQTE) Act”: 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 NIRC of 1997, as amended.

On Museums, Theaters, and Cultural Events - A five percent (5%) discount shall
be granted to underprivileged students on entrance fees to museums, theaters,
and cultural events sanctioned by the National Commission on Culture and Arts
anywhere in the country: Provided, That private museums, theaters and
producers of cultural events may claim the cost as allowable tax deduction from


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the gross income in the computation of the income tax in accordance with the
provisions of the NIRC of 1997, as amended.

Sec. 5. Limitations. - The Department of Education (DepEd), Technical Education and
Skills Development Authority (TESDA), and Commission on Higher Education (CHED) may
identify grounds for disqualification of students in availing the aforementioned discounts,
in accordance with the implementing rules and regulations of this Act: Provided, That
these grounds will not defeat the purpose of liberally granting such discounts to
underprivileged students.

Sec. 6. Roles of DepEd and CHED. - Qualified primary and secondary students, and
tertiary or college beneficiaries, shall be determined by DepEd and CHED, respectively.
These agencies shall have the following functions:

(a)To plan, implement, and monitor yearly work programs, evaluate and submit

annual reports in pursuance to the objectives of this Act;

(b) To screen applicants, receive documentary proof, and identify who are the eligible
underprivileged primary, secondary and 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 primary, secondary and
college students, respectively;

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

(e) To maintain and reguiarly update, on a quarterly basis, the list of underprivileged

primary, secondary, and college students who avail themselves of the discounts;

(f) To provide information to the affected establishments under Section 4 of this Act
for any questions regarding the eligibility of any underprivileged primary,
secondary and college students claiming the discounts through the DepEd and
CHED websites, respectively;

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

(h) To perform such other functions as may be determined by the DepEd Secretary
and CHED Chairperson.

Sec. 7. Role of TESDA. - The TESDA shall be in charge of determining the qualified

post-secondary tech-voc beneficiaries under this Act through its Office of Technical-
Vocational Education and Training (TVET) Systems Development Office (TSDO). The


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TESDA Director-General shall include in the regular functions of the TSDO the following
additional furictions:
(a) To plan, implement, and monitor 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 post-secondary students based on the provisions of this Act;
(©) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged post-secondary students;

(d) To issue identification cards which shail be valid anywhere in the country as proof
of the eligibility of the underprivileged post-secondary students to avail themselves
of the discounts;

(e) To maintain and regularly update, on a quarterly basis, the list of underprivileged
post-secondary 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 questions regarding the eligibility of any underprivileged post-secondary
students claiming the discounts through the TESDA website;

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

(i) To perform such other functions as may be determi
General in the implementation of this Act.

Sec. 8. Tax Incentives. - Discounts granted by establishments to underprivileged
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 NIRC of 1997,
as amended.

Sec. 9. Implementing Rules and Regulations. - The DepEd, TESDA, and 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),
Department of Finance (DOF), and such other agencies concerned 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 law
takes effect.

d by the TESDA Director-


Sec. 10. Penalties. - The first violation of any provisions of this Act shall cause the
suspension of the license to operate or the business permit of the establishment or person
concerned 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 provisions 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 officers
thereof shall suffer the same penalty imposed on any person found violating this Act.

Sec. 11. Enforcement. - Pursuant hereto, the DepEd, DTI, DOH, and local government
units (LGUs), in coordination with the CHED and TESDA, shall have the mandate 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. 12. Separability Clause. - If any provision or part thereof is held invalid or
unconstitutional, the other sections or provisions thereof shall not be affected thereby
and shall remain in force and effect.

Sec. 13. Repealing Clause. — Ali laws, executive orders, decrees, instructions, rules
and regulations contrary to or inconsistent with any provision of this Act are hereby
amended, repealed or modified accordingly.

Sec. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,