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

TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNO._434 __

Introduced by REP. RODOLFO “OMPONG” M. ORDANES

AN ACT
EXPANDING THE COVERAGE OF THE SENIOR CITIZENS PRIVILEGES AND
BENEFITS, FURTHER AMENDING REPUBLIC ACT NO. 7432, AS AMENDED,
ENTITLED “AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR
CITIZENS TO NATION BUILDING, GRANT BENEFITS, AND SPECIAL
PRIVILEGES AND FOR OTHER PURPOSES”

EXPLANATORY NOTE

The State recognizes the invaluable role of senior citizens in nation-building and is
mandated by the Constitution to promote their welfare and ensure that they are able
to live dignified and secured lives. In pursuit of this, Republic Act No. 7432, as
amended by Republic Act Nos. 9257 and 9994, was enacted to grant senior citizens

various benefits and privileges.

However, as the cost of living continues to rise and the needs of our aging population
evolve, there is an urgent need to expand and update the scope of benefits currently
provided to senior citizens. Many of our elderly still struggle to access affordable
goods, services, and healthcare despite the existing discounts and exemptions. Others
face challenges due to gaps in the implementation of the law and the limited coverage

of essential services and support systems.


This bill seeks to further amend Republic Act No. 7432, as amended, by expanding the
coverage of privileges and benefits granted to senior citizens, Specifically, the measure

includes:

* Extension of discounts and VAT exemption to online purchases made by senior
citizens;

* A15% discount on monthly electricity and water consumption not exceeding
the prescribed consumption thresholds;

© An8.5% special discount on basic necessities and prime commodities;

‘* A P25,000 death assistance benefit for the heirs or designated beneficiaries of a
deceased senior citizen;

Exemption from the number coding scheme and parking fees; and

«Discounts on toll fees for senior citizens who drive or are being transported in

private vehicles.

These additional benefits aim to ease the financial burden on our elderly population,
improve their quality of life, and ensure they are not left behind in a rapidly changing

economic and digital landscape.

The measure also reflects the State's firm commitment to providing accessible support
to our senior citizens, not just as a matter of welfare, but as an expression of gratitude
for their lifelong contributions to our nation.

It is likewise important to note that this bill was approved on Second Reading in the
House of Representatives during the 19th Congress, demonstrating broad support for

strengthening the rights and privileges of our elderly population.

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

RODOLFO “O! “” M. ORDANES


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

TWENTIETH CONGRESS
First Regular Session

434

HOUSE BILL NO.

Introduced by REP. RODOLFO “OMPONG” M. ORDANES:

AN ACT
EXPANDING THE COVERAGE OF THE SENIOR CITIZENS PRIVILEGES AND
BENEFITS, FURTHER AMENDING REPUBLIC ACT NO. 7432, AS AMENDED,
ENTITLED “AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR
CITIZENS TO NATION BUILDING, GRANT BENEFITS, AND SPECIAL
PRIVILEGES AND FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 2 of Republic Act No. 7432, as amended, is further
amended to read as follows:
“SEC. 2. Definition of Terms. - For purposes of this Act, these terms
are defined as follows:
“(@) 006
*(b) xx;

2X

(8) 00

“(h) x0

“() wor

“() 00%

“(K) MEDICINES REFER TO THE PRESCRIPTION AND
NON-PRESCRIPTION OR OVER-THE-COUNTER DRUGS, BOTH
GENERIC AND BRANDED, INCLUDING MEDICALLY


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PRESCRIBED BY THE ATTENDING PHYSICIAN, AND
APPROVED BY THE DEPARTMENT OF HEALTH (DOH) AND THE
FOOD AND DRUG ADMINISTRATION (FDA), WHICH ARE
INTENDED FOR USE IN THE DIAGNOSIS, CURE, MITIGATION,
TREATMENT OR PREVENTION OF HUMAN DISEASE OR
SICKNESS, BUT EXCLUDING FOOD, DEVICES OR THEIR
COMPONENTS, PARTS OR ACCESSORIES; AND

“(l) FOOD SUPPLEMENTS REFER TO DIETARY OR
NUTRITIONAL SUPPLEMENTS THAT AID THE NORMAL DIET
AND INCLUDE VITAMINS AND MINERALS, AMINO ACIDS,
FATTY ACIDS, HERBAL PRODUCTS, FORMULATED MILK AND
OTHER SUBSTANCES IN THE FORMS OF PILLS, TABLETS,
CAPSULES, POWDERED OR LIQUID FORM.”

SEC. 2. Section 4 of the same Act is further amended to read as follows:
“SEC. 4. Privileges for the Senior Citizens. - The senior citizens
shall be entitled to the following:

“(a) the grant of twenty percent (20%) discount and exemption
from the value-added tax (VAT), if applicable, on the sale of the
following goods and services, INCLUDING ONLINE SALES, from all
establishments, for the exclusive use and enjoyment or availment of
senior citizens:

“(1) on the purchase of medicines, INFLUENZA AND
PNEUMOCOCCAL VACCINES, FOOD SUPPLEMENTS,
[including the purchase of influenz preumeccecel es]
and such other essential medical supplies, accessories and
equipment to be determined by the Department of Health
(DOH);

xX;

“(2) on the professional fees of attending physician/s in all
private hospitals, medical facilities, outpatient clinics, and home

health care services, INCLUDING PAYMENTS MADE


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THROUGH HEALTH MAINTENANCE ORGANIZATIONS

OR INSURANCE COMPANIES;

“(3) on the professional fees of licensed professional health
workers providing home health care services as endorsed by
private hospitals or employed through home health care
employment agencies, INCLUDING PAYMENTS MADE
THROUGH HEALTH MAINTENANCE ORGANIZATIONS
OR INSURANCE COMPANIES;

“(4) on medical and dental services, diagnostic and
laboratory fees in all private hospital, medical facilities,
outpatient clinics, and home health care services, in accordance
with the rules and regulations to be issued by the DOH, in
coordination with the Philippine Health Insurance Corporation
(PhilHealth), INCLUDING PAYMENTS MADE THROUGH
HEALTH MAINTENANCE ORGANIZATIONS OR
INSURANCE COMPANIES;

(6) in actual fare for land transportation travel in public
utility buses (PUBs), public utility jeepneys (PUJs), taxis, Asian
utility vehicles (AUVs), shuttle services, TRANSPORT
NETWORK VEHICLE SERVICES (INVS) and public railways,
including Light Rail Transit (LRT), Mass Rail Transit (MRT), and
Philippine National Railways (PNR), AND PAYMENT OF
TOLL FEES IN SKYWAYS, AND EXPRESSWAYS;

“TO AVAIL OF THE DISCOUNT ON TOLL FEES, THE
VEHICLE MUST BE REGISTERED IN THE NAME OF THE SENIOR
CITIZEN.

“THE DEPARTMENT OF TRANSPORTATION, LIGHT RAIL
TRANSIT AUTHORITY, PHILIPPINE NATIONAL RAILWAYS,
TOLL REGULATORY BOARD, AND LAND TRANSPORTATION
FRANCHISING AND REGULATORY BOARD SHALL ISSUE THE
APPROPRIATE GUIDELINES FOR THE PUBLIC LAND
TRANSPORT SECTOR AND REQUIRE THE OPERATORS TO


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INFORM THE PUBLIC ON THE BENEFITS OF THE SENIOR
CITIZENS BY POSTERS, HANDBILLS PAMPHLETS OR SIMILAR
MEANS ON BOARD THE PUBLIC UTILITY VEHICLES.

6) 00%

“(7) on the utilization of services in hotels and similar lodging
establishments, restaurants and recreation centers, INCLUDING GOLF
AND COUNTRY CLUBS;

(8) xxx;

(9) xxx;

#(b) x0;

“() the grant of [a-minimum-of five_percent-{5%)] FIFTEEN
PERCENT (15%) discount [relative-to] ON the monthly utilization of
water and electricity supplied by public utilities: Provided, That the
individual meters for the foregoing utilities are registered in the name
of the senior citizen residing therein: Provided, further, That the monthly
consumption does not exceed [ene] TWO hundred kilowatt hours ([100]
(200 kWh) of electricity and [thirty] FIFTY cubic meters ([30] 50 m?) of
water: Provided, furthermore, That the DISCOUNT ON ELECTRICITY
SHALL BE GRANTED ON THE INCREMENTAL USAGE ABOVE
THE LIFELINE RATE AND WITHIN TWO HUNDRED KILOWATT
HOURS (200KWH), AS THE CASE MAYBE: PROVIDED, FINALLY,
THAT THE privilege is granted per household regardless of the number
of senior citizens residing therein AND THE REGISTERED SENIOR
CITIZEN CONTINUES TO RESIDE IN THE HOUSEHOLD;

"(d) x00;

(0) 0%;

(8) xxx;

(8) 0G

“(h) xxx;

(i) x05

“(j) [tothe extent possible, the government:may] THE grant OF
EIGHT AND A HALF PERCENT (8.5%) special discounts [in-special


programs for senior citizens] on THE purchase of basic NECESSITIES
AND PRIME commodities, [subject -to-the guidelines te-be issued for

Department_ofAgriculture-{DA)] FROM RETAILERS SUCH AS
SUPERMARKETS, GROCERY STORES, CONVENIENCE AND

MINI-CONVENIENCE STORES AND SHOPS, EXCLUDING
THOSE WITH A CAPITALIZATION OF LESS THAN ONE
HUNDRED THOUSAND PESOS (PHP 100,000.00), PUBLIC AND
PRIVATE WET MARKETS, “TALIPAPA” AND COOPERATIVE
STORES: PROVIDED, THAT THE TOTAL AMOUNT OF
PURCHASE SHALL NOT EXCEED FIVE THOUSAND PESOS
(PHPS5,000.00)PER CALENDAR WEEK WITHOUT CARRY-OVER OF
THE UNUSED AMOUNT;

“THE CONCERNED RETAILERS SHALL POST SIGNAGES
AT THE ENTRANCE OR AT ANY CONSPICUOUS PLACE WITHIN
‘THE ESTABLISHMENT, AND AT EACH PAYMENT COUNTER TO
INFORM THE PUBLIC OF THE SPECIAL DISCOUNTS.

“THE NATIONAL COMMISSION OF SENIOR CITIZENS
SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TRADE AND INDUSTRY (DTI), DEPARTMENT OF
AGRICULTURE, DEPARTMENT OF ENERGY, BANGKO SENTRAL
NG PILIPINAS, NATIONAL ECONOMIC AND DEVELOPMENT
AUTHORITY, DEPARTMENT OF SOCIAL WELFARE AND
DEVELOPMENT AND OTHER RELEVANT GOVERNMENT
AGENCIES, REVIEW AND ASSESS THE IMPACT OF THE
SPECIAL DISCOUNT RATE ON THE PURCHASE OF BASIC
NECESSITIES AND PRIME COMMODITIES, AND SUBMIT A
RECOMMENDATION REPORT TO CONGRESS EVERY THREE (3)
YEARS.

“(k) x00 [and]

“() death benefit assistance of a minimum of [Fwe-theusand
peses—(Php-2,000:00)] TWENTY-FIVE THOUSAND PESOS (PHP


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25,000.00) shall be given to the nearest surviving relative of a deceased
senior citizen which amount shall be subject to adjustments due to
inflation in accordance with the [guidelines to-be issued by the DSWD)
ESTIMATED ANNUAL INFLATION RATE BY THE PHILIPPINE
STATISTICS AUTHORITY;

“XXX.

“(M) EXEMPTION FROM THE UNIFIED VEHICULAR
VOLUME REDUCTION PROGRAM IF THE SENIOR CITIZEN IS
DRIVING OR ON BOARD THE VEHICLE;

“(N) TWENTY PERCENT (20%) DISCOUNT ON TRAFFIC
FINES FOR WHICH THEY ARE FOUND LIABLE;

“(0) EXEMPTION FROM PARKING FEE IN ALL
COMMERCIAL AND GOVERNMENT ESTABLISHMENTS
DURING THE REGULAR OPERATING HOURS OF THE
ESTABLISHMENT IF THE SENIOR CITIZEN IS DRIVING OR ON
BOARD THE VEHICLE ENTERING THE ESTABLISHMENT;

“In the availment of the privileges mentioned above, the senior
citizen, or [his/her] duly authorized representative, may submit as
proof of [his/her] entitlement thereto any of the following:

(1) 00%

"Q) 0%

4) xxx.

“In the purchase of goods and services which are on promotional
discount, the senior citizen can avail of the promotional discount or the
discount provided herein, whichever is higher.

“The establishment may claim the discounts granted under
subsections (a) and (c) of this section as tax deduction based on the cost
of the 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 (NIRC), as amended. LIKEWISE,
ESTABLISHMENTS MAY CLAIM THE COST OF VAT
EXEMPTION AND DISCOUNT GRANTED UNDER THIS
SECTION AS TAX DEDUCTION.”

SEC. 3. Within ninety (90) days from the approval of this Act, the Chairperson
of the National Commission of Senior Citizens and heads of concerned
government agencies shall formulate and adopt amendments to the existing
rules and regulations implementing the provisions of RA 7432, as amended, to
carry out the objectives of this Act.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,