Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. _ 1325

Introduced by: HON. “KUYA” JOSE ANTO!

R. SY-ALVARADO

AN ACT PROVIDING FOR A TWENTY PERCENT (20%) DISCOUNT
PRIVILEGE ON THE SALE OF GOODS AND SERVICES FOR ACTIVE
MEMBERS OF THE ARMED FORCES OF THE PHILIPPINES (AFP) AND
PHILIPPINE NATIONAL POLICE (PNP)

EXPLANATORY NOTE

This bill seeks to provide a twenty percent (20%) discount privilege on the sale of
goods and services for the active members of the Armed Forces of the Philippines
(AFP) and the Philippine National Police (PNP)

The Constitution provides that the Armed Forces of the Philippines is the
protector of the people and of the State. It likewise provides for the establishment
of a police force responsible for the maintenance of peace and order and public
safety.

Our men and women in uniform exemplify remarkable dedication,
commitment and loyalty for our country. Despite modest salary, they repel threats
and aggression and suffer untold hardships during military or police operations.
Indeed, for all the many sacrifices of our valiant men and women in uniform, they
should not only be commended but should be granted additional benefits.

Thus, providing for a twenty (20%) percent discount privilege on the sale of
goods and services for the consumption of the active members of the AFP and PNP
is our little way of recognizing their sacrifices in protecting and maintaining our
national security, territorial integrity and the preservation and maintenance of
peace, public order and public safety.

In view of the foregoing, approval of this bill is highly afd earnestly
recommended.

4

“KUYA” JOSE ANTONIO R. SY-ALVARADOJ~
Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 1325

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO.

SECTION 1. Short Title. — This Act shall be known as the “AFP-PNP Discount
Privilege Act.”

SEC. 2. Declaration of State Policy. — It is the policy of the State to strengthen
the nationalist consciousness of the military and police personnel, develop
professionalism and patriotism among the members of the armed forces and the police
force, and provide them adequate remuneration and benefits.

SEC. 3. Discount Privilege. ~ Members of the Armed Forces of the Philippines
(AFP) and Philippine National Police (PNP) are entitled to twenty percent (20%)
discount and exemption from the value-added tax (VAT), if applicable, on the following
sale of goods and services for their exclusive use and enjoyment or availment:

(a) Fare on domestic air and sea travel based on the actual fare, advanced
booking and other similar discounted fare;

(b) Actual fare for land transportation travel in public utility buses, jeepneys,
taxis, shuttle services and public railways, light rail transit, mass rail transit, and any

transportation fare for domestic transport of passengers by air or sea vessels;


(c) Utilization of services in hotels and similar lodging establishments,
restaurants and recreation centers;

(a) Admission fees charged by theaters, cinema houses and concert halls,
circuses, carnivals and other similar places of culture, leisure and amusement; and

(©) Purchase of medicines in all drugstores.

The discount privileges may not be claimed if the member of the AFP or PNP
claims a higher discount as may be granted by the establishment or under other existing
laws or in combination with other discount programs.

SEC. 4. Qualified Beneficiary. — Only members of the AFP and PNP who are
in active service, are entitled to the benefits under this Act. Military and police reservists
are not eligible to enjoy the benefits provided under this Act unless the reservists are
called upon to serve in active duty.

SEC. 5. Availment. — Members of the AFP and PNP may avail of the twenty
percent (20%) discount upon presentation of a valid identification card, AFP or PNP
booklets and other supporting documents duly issued by the Department of National
Defense or Philippine National Police.

SEC. 6. Tax Deduction.—The companies and establishments that extend the
discount privilege under this Act to the members of the AFP and PNP shall be allowed
to claim the discounts granted as tax deductions based on the net cost of the goods sold
or services rendered: Provided, That the cost of the discount shall be allowed as
deduction for 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 gross sales receipts for tax purposes subject


to proper documentation and to the provisions of the National Internal Revenue Code,
as amended.

SEC. 7. Penalties. — Any person who refuses to grant the twenty percent (20%)
discount privilege mentioned under this Act shall be punished with the following
penalties:

(a) Imprisonment of not less than two (2) years but not more than six (6) years
and a fine of not less than Fifty thousand pesos (P50,000.00) but not more than One
hundred thousand pesos (P100,000.00) for the first violation;

(b) For any subsequent violation, imprisonment of not less than two (2) years
but not more than six (6) years and a fine of not less than One hundred thousand pesos
(100,000.00) but not more than Two hundred thousand pesos (P200,000.00).

‘Any member of the AFP and PNP who abuses the privileges granted under this
Act shall be punished with imprisonment of not less than six (6) months and a fine of
not less than Fifty thousand pesos (P50,000.00) but not more than One hundred thousand
pesos (P100,000.00).

If the offender is a corporation, partnership, organization or any similar entity,
the officials thereof directly involved such as the president, general manager, managing
partner, or such other officers charged with the management of the business affairs shall
be liable therefor. If the offender is an alien or a foreigner, the offender shall be deported
immediately after service of sentence.

Upon 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 person,
establishment or business entity that fails to abide by the provisions of this Act.

SEC. 8. Implementing Rules and Regulations. — Within sixty (60) days from
the approval of this Act, the Secretary of National Defense and the Secretary of the
Interior and Local Government shall promulgate the pertinent rules and regulations for
the effective implementation of this Act.

SEC. 9. Repealing Clause. — All laws, presidential decrees, executive orders,
and rules and regulations or part thereof, contrary to or inconsistent with the provisions

of this Act, are hereby repealed or modified accordingly.

SEC. 10. Effectivity. — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation.