FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
} 
OF THE PHILIPPINES 
SENATE 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORYNOTE 
All throughout our youth, we work hard and save up for a comfortable 
retirement. We look forward to the day when we could watch our grandchildren 
play and devote ourselves to activities beyond the rigors of labor. 
It is a time-honored tradition to care for the elderly and ensure that they 
are supported in their twilight days. 
In 1992, I authored and sponsored the Senior Citizen’s Law which grants 
benefits and special privileges to the Filipino elderly. It was a first and 
monumental attempt to give life to Article XV, Section 4 of the Constitution, 
which states that “it is the duty of the family to take care of the elderly while 
the Senate may design programs of social security for them” 
In the law, the senior citizens are entitled to a 20% discount on the 
purchase of goods and services, medical and dental services, transport fare, 
funeral and burial services, among others. This is also under Republic Act No. 
9257, otherwise known as the “Expanded Senior Citizens Act of 2003,” 
The 20% discount privilege granted to senior citizens has eased their 
daily budget to a reasonable ext,ent that allows them to maximize their 
resource-spending. It has also improved the total well-being of the elderly 
permitting full participation in society. 
On May 24, 2005, however, upon the enactment of RA 9337 more 
popularly known as the Expanded Value Added Tax (EVAT), a value- 
added tax equivalent to ten (10%) percent of the gross selling price or gross 
value in money of the goods or properties, is levied, assessed and collected 
every sale, barter or exchange of goods or properties. This was later 
increased to twelve (12%) percent by the President in the year 2006, thus, 
the discount privilege granted to the elderly is effectively diminished. As a 
result, senior citizens are enjoying only an 8% discount. This prevents the 
elderly from fully enjoying the benefits mandated by law. 
This bill addresses this discrepancy and seeks to exempt senior citizens 
from the Expanded Value Added Tax of the sale of goods and services. 
Hence, RA 9257 must be amended in order to allow the senior citizens to 
enjoy the full 20% discount privilege. L 


Let us continue motivating and encouraging our elderly to contribute 
to nation building, and encourage their families and other communities to 
reaffirm their tradition of caring for the elderly. 
Let us not begrudge them of their miles to walk before they sleep. 
w/qx, 
EDGARDO J. ANGARA 
Senator 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
} 
OF THE PHILIPPINES 
1 
SENATE 
Introduced by SENATOR EDGARDO J. ANGARA 
.. . 
AN ACT EXEMPTING FROM THE EXPANDED VALUE ADDED 
TAX THE SALE OF GOODS AND SERVICES TO SENIOR 
CITIZENS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 
9257, OTHERWISE KNOWN AS THE "EXPANDED SENIOR 
CITIZENS ACT OF 2003". 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 4 of Republic Act No. 9257 is hereby amended 
to read as follows: 
"SEC. 4. Privileges for the Senior Citizens. - The senior 
citizens shall be entitled to the following: 
a) 
xxx 
xxx 
xxx 
The establishment may claim the discounts granted under (a), 
(0, 
(g) and (h) as tax deduction based on the net 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: Prouided, 
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 and shall be subject to 
proper documentation and to the provisions of the NationaI 
Internal Revenue Code, as amended. 
ANY 
PROVISION 
OF LAW 
TO 
THE 
CONTRARY 
NOTWITHSTANDING, THE SALE O F  GOODS AND SERVICES 


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TO SENIOR CITIZENS UNDER (A), (B), (F), (G) and (H) OF THIS 
SECTION SHALL BE EXEMPT FROM THE EXPANDED 
VALUE ADDED TAX AS PROVIDED UNDER THE NATIONAL 
INTERNAL RE-VENUE CODE, AS AMENDED. 
xxx 
xxx 
xxx" 
SECTION 2. This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) national newspapers of general 
circulation 
Approved, 
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