REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

4
House Bill No. 7224

Introduced by HON. KRISTINE ALEXIE B. TUTOR
Third District, Bohol

EXPLANATORY NOTE

The government has initiated various programs and systems that would provide
scholarship grants, student loans, and other incentives to deserving students especially
the underprivileged as provided by the Constitution mandating the State to protect and
promote the rights of every Filipino in accessing quality education.

Republic Act No. 10931 or the Universal Access to Quality Tertiary Education was enacted
in 2016 which seeks to further promote accessibility to the quality higher education.
However, even with RA 10931 in place as well as countless other systems of scholarships
and loans, many underprivileged students still fail to earn a degree or finish basic
education due to lack of financial capacity to spend for their other needs such as
transportation, school supplies, and other, forcing them to drop out from school.

The continuing spread of COVID-19 poses additional challenges to our students as new
measures to cope with the virus were instituted in education and learning. The
government has pushed for the conduct of online/ distance learning in our education
system. This shift to online education will cause further financial burden to our
underprivileged students who now need to provide electronic devices and internet
connection to continue with their studies.

To ease the financial burden of underprivileged students and help them cope with the
high cost of education as well as daily school expenses, this measure 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 purchase of books, school supplies and electronics for purposes of
participating in online/distance learning. In turn, the discounts granted by
establishments to underprivileged students shall be treated as allowable deduction from
their gross income.

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

sought.
REP. eas ALEXIE B. TUTOR


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

4
House Bill No. eee

Introduced by HON. KRISTINE ALEXIE B. TUTOR
Third District, Bohol

AN ACT
GRANTING FIVE PERCENT (5%) DISCOUNT 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 2020."

Sec. 2. Declaration of Policy. - It is the policy of the State to prioritize quality

education 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
in bachelor's Degree Programs at the college level, whose parents have a gross annual
income of not more than Two Hundred Fifty Thousand Pesos (P250,000.00), 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 Two Hundred Fifty Thousand Pesos (P250,000.00),
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;

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(0) Basic Services refer to basic necessities such as food for snacks and meals 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:

(a)

0)

(@

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 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 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;

On Prescribed Electronic Devices for purposes of Online/Distance Learning - A
five percent (5%) discount shall be granted to underprivileged students by
establishments anywhere in the country that sell electronic devices including but
not limited to computers, tablets and other electronic devices which may
hereinafter be prescribed: 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


(e) On Tuition Fees, Miscellaneous, and Other School 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 costas 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
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;

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(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;

(©) 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;

(€) To maintain and regularly update, on a quarterly basis, the list of underprivileged
primary, secondary, and college students who avail themselves of the discounts;

(8) 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 primary,
secondary and college students claiming the discounts through the DepEd and
CHED websites, respectively;

(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 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
TESDA Director-General shall include in the regular functions of the TSDO the following
additional functions:

(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;


COVNAKHAWNHE

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(©) To closely coordinate with the NEDA in determining the income brackets of
Filipino families for the purpose of identifying underprivileged post-secondary

student

(d) To issue identification cards which shall 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 determined by the TESDA Director-

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.


wooaVanauneye

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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 ofthe 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. - All 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,