Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO.  ________ 
Introduced by Lone District of Agusan del Norte Representative 
HON. DALE B. CORVERA 
AN ACT  
ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS AND SERVICES 
OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES  
EXPLANATORY NOTE 
Filipinos who are part of the vulnerable sectors such as Senior Citizens and Persons 
with Disability often incur more expenses to enjoy life or simply survive – e.g. maintenance 
medicines, therapy sessions, medical procedures. Ironically however, earning opportunities, 
more particularly through employment, for our Senior Citizens and PWDs remain limited 
despite interventions and policy reforms by the government. 
The government has long recognized the need to support vulnerable sectors such as 
Senior Citizens and Persons with Disabilities (PWDs), among others, through economic relief 
measures such as the passage of Republic Act (RA) No. 7432, otherwise known as “Senior 
Citizens Act,” as amended, and RA No. 7277, otherwise known as “Magna Carta for Persons 
with Disability,” as amended. Among these are the grant of 20% discount and Exemption from 
the 12% Value-Added Tax (VAT) on select goods and services for their personal and exclusive 
use. However, the application of these benefits becomes complex when goods are already 
offered at promotional or discounted prices by business establishments. 
In some instances, unscrupulous business establishments even offer their goods or 
services at a promotional or discounted rate just to avoid or deny the application of the 
aforementioned discounts, even without the appropriate permit/s by the Department of Trade 
and Industry and other concerned government agencies. 
This bill reflects a growing recognition that preferential treatment should not be diluted 
by commercial promotions or worse, by greed. As the nation strives for a more inclusive 
economy, ensuring that these benefits are fully and fairly applied is both a legal and moral 
imperative. 
For these reasons, this representation believes that the grant of 20% discount and 
exemption from VAT afforded to Senior Citizens and PWDs must also be applied to goods and 
services which are offered in promotional or discounted rates or prices, with or without the 
necessary government permit/s. 
July 31, 2025
4:55 pm
2845


This bill is a rehash of House Bill No. 10312 which was approved on third reading by 
the House of Representatives on 21 May 2024 during the 19th Congress. 
In view of the foregoing, immediate approval of this bill is earnestly sought. 
DALE B. CORVERA 
Representative 
Lone District of Agusan del Norte 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO.  ________ 
Introduced by Lone District of Agusan del Norte Representative 
HON. DALE B. CORVERA 
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 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. 
2845


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’ ”; and 
 
(d) Section 4(l) 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,