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

TWENTIETH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO. 1377

Introduced by Representative
ZIAUR-RAHMAN “ZIA” ALONTO ADIONG

EXPLANATORY NOTE

Senior citizens and persons with disabilities (PWDs) are among the most
vulnerable sectors of society. As such, they are entitled to special protection
and assistance from the State to ensure that their rights to a life of dignity,
economic security, and full participation in society are upheld. This bill seeks
to enhance existing benefits by ensuring the full and unhampered enjoyment
of the discounts granted to them under the law.

Under current laws—Republic Act No. 7432 as amended by R.A. 9994
(Expanded Senior Citizens Act of 2010), and R.A. 7277 as amended by R.A.
9442 and R.A. 10754 (Magna Carta for Persons with Disability)—senior
citizens and PWDs are entitled to a twenty percent (20%) discount and
exemption from value-added tax (VAT) on the purchase of certain goods and
services. However, many business establishments do not apply these
privileges when promotional offers or discounts are already in place, often
resulting in denied benefits.

This bill clarifies that the statutory discount for senior citizens and PWDs shall
be applied on top of any existing promotional discount offered by
establishments. It also ensures that the cost of the discount remains a
deductible expense for business owners, thereby maintaining a fair balance
between social responsibility and commercial viability. Furthermore, the
measure seeks to eliminate unnecessary barriers—such as the mandatory
presentation of booklet IDs for basic purchases—thus easing access to the
privileges.

The bill also mandates the relevant government agencies to issue the
necessary implementing rules and regulations in consultation with
stakeholders, thereby ensuring consistent and effective enforcement.

By strengthening the legal framework around these discounts, this measure
reaffirms the State’s commitment to social justice and inclusive development.
It recognizes the continuing contributions of senior citizens and PWDs and


ensures that they are not further burdened by economic limitations when
availing of their rightful benefits.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

REP. ZL -RAHMAN ALONTO ADIONG
1st District, Lanao del Sur


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

TWENTIETH CONGRESS
FIRST REGULAR SESSION

House BILL No, 1377

Introduced by Representative
ZIAUR-RAHMAN “ZIA” ALONTO ADIONG

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 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 Citizens
Act,” as amended, and Section 32 of RA No. 7277, otherwise known as “Magna
Carta for Disabled 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, but in no way that it will require presentation of booklets in
the procurement of goods.


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 No. 7432, as
amended, and Section 32 of RA No. 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 No. 7432, as amended, and subsection (a), paragraphs
(1), (2), (3), (5), (6), (7) and (8) and subsection (d) of Section 32 of RA No. 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.

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

(a) Section 4 of RA No. 7432, as amended by RA No, 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;

(b) Section 32 of RA No. 7277, as amended by RA No. 10754, insofar as
higher discount granted by the commercial establishment, other existing laws
‘or in combination with other discount programs is concerned;

(c) Section 32(j) of RA No. 9442, entitled “An Act Amending Republic Act No.
7277, Otherwise Known as the ‘Magna Carta for Disabled Persons, and for
Other Purposes”;

(d) Section 4(1) of RA No. 9257, entitled “An Act Granting Additional Benefits
and Privileges to Senior Citizens Amending for the Purpose Republic Act No.
7432, Otherwise Known as ‘An Act to Maximize the Contribution of Senior
Citizens to Nation Building, Grant Benefits and Special Privileges for the Other


Purposes”.

© 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,