NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHIQPPINES 
First Regular Session
x%Jr V #fftcr of ti)f
*22 JUL-7 P2 24
SENATE 
S. B. No. 95
RECElITDE..
Introduced by Senator SONNY ANGARA
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
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.
Even with the system of scholarship grants and student loan programs 
provided by the government, not all deserving and underprivileged students get to 
finish their education because they lack the financial capacity to spend for their basic 
needs and other expenses related to their studies.
Another challenge faced by these students is the changing landscape in 
education and learning brought about by the continuing fight against COVID-19. 
Facing lockdowns and community quarantines, the Department of Education and the 
Commission on Higher Education implemented distance learning nationwide, to 
enable the students to continue their education albeit online. The shift to 
online/distance learning has caused further financial burden to students as they are 
now required to have specific electronic devices and access to the internet in order 
to participate in their classes.


Recently, both DepEd and CHED approved the implementation of limited face- 
to-face classes and online hybrid learning setup1 which is seen to prompt the 
students to deal with school expenses related to both face-to-face classes and online 
learning.
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 :urn, 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.
NNY ANGARA
1 https;//www, gmanetwork.com/news/topstories/nation/823703/ched-to-continue-f1exible-learning-as-a-policy-for-heis/story/


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Senate
of the £~:rretary
■22 JUL-7 P2 24
SENA TE
S. B. No. 95
RECEIVtD BV.
Introduced by Senator SONNY ANGARA
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:
1 
Section 1. Short Title. - This Act shall be known as the "Underprivileged
2 
Students' Discount Act of2022."
3 
Sec. 2. Declaration of Policy. - It is the policy of the State to prioritize quality
4 
education and take appropriate steps to make such education accessible to all.
5 
Sec. 3. Definition of Terms. - As used in this Act, the following terms shall
6 
mean:
7 
(a) Underprivileged Student refers to a Filipino student enrolled in basic
8 
education, post-secondary non-degree technical-vocational (Tech-Voc)
9 
courses, and those enrolled in bachelor's Degree Programs at the college
10 
level, whose parents have a gross annual income of not more than Two
11 
Hundred Fifty Thousand Pesos (P250,000.00), subject to review by the
12 
National Economic and Development Authority (NEDA) every three years:
13 
Provided, That a Filipino student who opts to take part-time jobs to subsidize
14 
the student's education and whose income combined with the annual gross
15 
income of the student's parents do not exceed Two Hundred Fifty Thousand


1 
Pesos (P250/000.00)/ subject to review by the NEDA every three (3) years, is
2 
deemed an Underprivileged Student;
3 
(b) Discounts refer to an amount deducted or counted off from the cost of goods
4 
under basic services and from fees to be collected on education services;
5 
(c) Basic Services refer to basic necessities such as food for snacks and meals
6 
and medicines; and
7 
(d) Education Services refer to education-related expenditures such as tuition,
8 
miscellaneous and other school fees, books, and school supplies.
9 
Sec. 4. Discounts for Underprivileged Students. - Underprivileged students
10 
shall be entitled to the following:
11 
(a) On Food Establishments - A five percent (5%) discount shall be granted to
12 
underprivileged students by food establishments such as food chains,
13 
canteens and restaurants anywhere in the country: Provided, That private
14 
food establishments may claim the cost as allowable tax deduction from the
15 
gross income in the computation of the income tax in accordance with the
16 
provisions of the National Internal 
Revenue Code (NIRC) of 1997, as
17 
amended;
18 
(b) On Medicines - A five percent (5%) discount shall be granted to
19 
underprivileged students by pharmacies or drug stores anywhere in the
20 
country: Provided, That these pharmacies or drug stores may claim the cost
21 
as allowable tax deduction from the gross income in the computation of the
22 
income tax in accordance with the provisions of the NIRC of 1997, as
23 
amended;
24 
(c) On Textbooks and School Supplies - A five percent (5%) discount shall be
25 
granted to underprivileged students by establishments anywhere in the
26 
country that sell reference books and school supplies: Provided, That these
27 
establishments may claim the cost as allowable tax deduction from the gross
28 
income in the computation of the income tax in accordance with the
29 
provisions of the NIRC of 1997, as amended;
30 
(d) On Prescribed Electronic Devices for purposes of Online/Distance Learning -
31 
A five percent (5%) discount shall be granted to underprivileged students by
32 
establishments anywhere in the country that sell electronic devices including


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
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 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.
(f) 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.
i


1 
Sec. 6. Roles of DepEd and CHED. - Qualified primary and secondary
2 
students, and tertiary or college beneficiaries, shall be determined by DepEd and
3 
CHED, respectively. These agencies shall have the following functions:
4 
(a) To plan, implement, and monitor yearly work programs, evaluate and submit
5 
annual reports in pursuance to the objectives of this Act;
6 
(b)To screen applicants, receive documentary proof, and identify who are the
7 
eligible underprivileged primary, secondary and college students based on the
8 
provisions of this Act;
9 
(c) To closely coordinate with the NEDA in determining the income brackets of
10 
Filipino families for the purpose of identifying underprivileged primary, secondary
11 
and college students, respectively;
12 
(d)To issue identification cards which shall be valid anywhere in the country as
13 
proof of the eligibility of the underprivileged primary, secondary and college
14 
. students to avail themselves of the discounts;
15 
(e) To maintain and regularly update, on a quarterly basis, the list of underprivileged
16 
primary, secondary, and college students who avail themselves of the discounts;
17 
(f) To cancel the identification cards issued for those disqualified under Section 5 of
18 
this Act;
19 
(g) To provide information to the affected establishments under Section 4 of this Act
20 
for any questions regarding the eligibility of any underprivileged primary,
21 
secondary and college students claiming the discounts through the DepEd and
22 
CHED websites, respectively;
23 
(h) To monitor the extent of implementation of this Act and to coordinate with the
24 
concerned agencies regarding the imposition of penalties on violators of this Act;
25 
and
26 
(i) To perform such other functions as may be determined by the DepEd Secretary
27 
and CHED Chairperson.
28 
Sec. 7. Role of TESDA. - The TESDA shall be in charge of determining the
29 
qualified post-secondary tech-voc beneficiaries under this Act through its Office of
30 
Technical-Vocational Education and Training (TVET) Systems Development Office
31 
(TSDO). The TESDA Director-General shall include in the regular functions of the
32 
TSDO the following additional functions:


1 
(a) To plan, implement, and monitor work programs, evaluate and submit annual
2 
reports in pursuance of the objectives of this Act;
3 
(b)To screen applicants, receive documentary proof, and identify who are the
4 
eligible underprivileged post-secondary students based on the provisions of
5 
this Act;
6 
(c) To closely coordinate with the NEDA in determining the income brackets of
7 
Filipino families for the purpose of identifying underprivileged 
post-secondary
8 
students;
9 
(d)To issue identification cards which shall be valid anywhere in the country as
10 
proof of the eligibility of the underprivileged post-secondary students to avail
11 
themselves of the discounts;
12 
(e)To maintain and regularly update, on a quarterly basis, the list of
13 
underprivileged post-secondary students who avail themselves of the
14 
discounts and to review, evaluate and assess their academic standing;
15 
(f) To cancel the identification cards issued for those disqualified under Section 5
16 
of this Act;
17 
(g)To provide information to the affected establishments under Section 4 of this
18 
Act for any questions regarding the eligibility of any underprivileged post-
19 
secondary students claiming the discounts through the TESDA website;
20 
(h)To monitor the extent of implementation of this Act and to coordinate with
21 
the concerned agencies regarding the imposition of penalties on violators of
22 
this Act; and
23 
(i) To perform such other functions as may be determined by the TESDA
24 
Director-General in the implementation of this Act.
25 
Sec. 8. Tax Incentives. - Discounts granted by establishments to
26 
underprivileged students under this Act shall be treated as allowable deduction from
27 
the gross income in the computation of the income tax, in accordance with the
28 
provisions of NIRC of 1997, as amended.
29 
Sec. 9. Implementing Rules and Regulations. - The DepEd, TESDA, and
30 
CHED, in coordination with the NEDA, the Department of Social Welfare and
31 
Development (DSWD), the Department of Health (DOH), the Department of Trade
32 
and Industry (DTI), Department of Finance (DOF), and such other agencies


1 
concerned with the establishments which may be affected by this Act, shall issue the
2 
implementing rules and regulations to carry out the objectives of this Act within
3 
thirty (30) days after this law takes effect.
4 
Sec. 10. Penalties. - The first violation of any provisions of this Act shall cause
5 
the suspension of the license to operate or the business permit of the establishment
6 
or person concerned for not less than one (1) week but not more than four (4)
7 
weeks and a fine of not less than Twenty Thousand Pesos (P20,000.00) but not
8 
more than Fifty Thousand Pesos (P50,000.00).
9 
The second violation of any provisions of this Act shall cause the suspension
10 
of the license to operate or the business permit of the establishment or the person
11 
concerned for not less than four (4) weeks and a fine of not less than Fifty
12 
Thousand Pesos (P50,000.00), but not exceeding Two Flundred Fifty Thousand
13 
Pesos (P250,000.00): Provided, however, That the procedure of notice and hearing
14 
shall have been complied with prior to the imposition of the said penalties.
15 
If the offender is a corporation, organization or any similar entity, the officers
16 
thereof shall suffer the same penalty imposed on any person found violating this Act.
17 
Sec. 11. Enforcement - Pursuant hereto, the DepEd, DTI, DOH, and local
18 
government units (LCDs), in coordination with the CFIED and TESDA, shall have the
19 
mandate to implement the provisions of this Act. After filing of an appropriate
20 
complaint, and after due notice and hearing, the proper authorities may also cause
21 
the cancellation or revocation of the business permit, permit to operate, franchise
22 
and other similar privileges granted to any business entity that fails to abide by the
23 
provisions of this Act.
24 
Sec. 12. Separability Clause. - If any provision or part thereof is held invalid
25 
or unconstitutional, the other sections or provisions thereof shall not be affected
26 
thereby and shall remain in force and effect.
27 
Sec. 13. Repealing Clause. - All laws, executive orders, decrees, instructions,
28 
rules and regulations contrary to or inconsistent with any provision of this Act are
29 
hereby amended, repealed or modified accordingly.
30 
Sec. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after
31 
its publication in the Official Gazette or in a newspaper of general circulation.
Approved,