FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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S E N A T E  
INTRODUCED BY THE HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
Section 4, Article XV of the 1987 Constitution provides that “The famiIy has the duty to 
care for its elderly members but the State may also do so through just programs of social 
secuziity. ” Further, Section 11, Article XI1 provides that ” n e  State shall adopt an integrated and 
comprehensive approach to hedth and other social services available to d I  the people at 
aflordable cmt. There shall be pnoriity for the needs of the underprivigeed, sick, elderly, 
disabled, women and children. 
One of the distinct traits of Filipino families is the courtesy and respect for senior citizens. 
No less than our Constitution considers the family as the foundation of the nation, thus the role 
being played by the elderly in the development of their families and communities cannot be 
overstated. In recognition of their wisdom and worth, the country fully counts older persons as 
active part of its human resource; as such, their welfare and protection are emergent concerns of 
the national government. 
Consonant with the above-referred constitutional mandate and the Filipinos’ courtesy and 
respect for the senior citizens, the Expanded Senior Citizens Act of 2003 (Republic Act No. 9257) 
was enacted. Under this law senior citizens are entitled to a 20% discount on the utilization of 
services in hotels, similar establishments as well as the purchase of medicines, among others. 
However, with the imposition of the 12% Expanded Value-Added Tax (EVAT) on the sale of 
goods and services, the 20% discount privilege accorded to senior citizens effectively diminished. 
It bears stressing that most of our senior citizens have no steady source of income after 
retirement, thus the 20% senior citizen’s discount and exemption from the 12 Yo EVAT would be 
of big help to them. 
Thus, this bill seeks to introduce measures in order to ensure that senior citizens fully 
enjoy the benefits intended for them by the law. For this purpose, this bill proposes to exempt 
our senior citizens from the imposition of the 12% EVAT on their purchase of medicines. 
Further, this bill gives greater incentive to drugstore owners who shall faithfully comply 
with the provisions of this proposed measure by allowing them to claim the discounts they 
granted as tax credit to be subtracted from the respective drug outlet’s tax liability for the same 
taxable year that the discount is granted and allows the accumulation and carry-over of any 
excess tax credits to succeeding periods not extending beyond three (3) years from the date 
earned. It shall, on the other hand, impose stiffer penalties for those who violate the same. 
In view of the foregoing, the passage of this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
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S E N A T E  
, 
INTRODUCED BY THE HONORABLE MAR ROXAS 
AN ACT 
ENSURING THE FULL ENJOYMENT OF SENIOR CITIZENS DISCOUNT ON 
THE PURCHASE OF DRUGS AND MEDICINES BY EXEMPTING SUCH 
PROVIDING GREATER INCENTIVES TO DRUG OUTLETS COMPLYING 
WITH REPUBLIC ACT NO. 9257 OR THE “EXPANDED SENIOR CITIZENS 
ACT OF 2003”, IMPOSING STIFFER PENALTIES FOR VIOLATIONS 
THEREOF, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9257, 
AND FOR OTHER PURPOSES. 
TRANSACTION FROM THE IMPOSITION OF VALUE-ADDED TAX (VAT), 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Section 4 of Republic Act No. 9257 otherwise known as the ‘JEkpanded 
Senior Citizens Act of2003”is hereby 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 from all establishments 
relative to the utilization of services in hotels and similar lodging 
establishment, restaurants and recreation centers [, and purchase of 
medicines in all establishments for the exclusive use or enjoyment of 
senior citizens, including funeral and burial services for the death of 
senior citizens]; 
(B) THE GRANT OF TWENTY PERCENT (20%) DISCOUNT ON THE 
PURCHASE OF DRUGS AND MEDICINES FOR THE EXCLUSIVE 


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USE OF SENIOR CITIZENS IN ALL DRUG OUTLETS, LE. DRUG 
STORES, 
PHARMACIES, 
AND 
OTHER 
BUSINESS 
ESTABLISHMENTS, WHICH SELL DRUGS AND MEDICINES; 
PROVIDED, THAT THE SALE OF SUCH DRUGS AND MEDICINES 
SHALL BE EXEMPT FROM VALUE-ADDED TAX VAT) PROVIDED 
UNDER THE NATIONAL INTERNAL REVENUE CODE, AS 
AMENDED. 
(C) THE GRANT OF TWENTY PERCENT (20%) DISCOUNT ON 
FUNERAL AND BURIAL SERVICES FOR THE DEATH OF SENIOR 
CITIZENS. 
[(b)] (D) a minimum of twenty percent (20%) discount on admission 
fees charged by theaters, cinema houses and concert halls, circuses, 
carnivals, and other similar places of culture, leisure and amusement 
for the exclusive use or enjoyment of senior citizens; 
[(c)] (E) exemption from the payment of individual income taxes: 
Provided, That their annual taxable income does not exceed the 
poverty level as determined by the National Economic and 
Development Authority (NEDA) for that year; 
[(d)] (F) exemption from training fees for socioeconomic programs; 
[(e)] (G) free medical and dental service, diagnostic and laboratory fees 
such as, but not limited to, x-rays, computerized tomography scans and 
blood tests, in all government facilities, subject to the guideIines to be 
issued by the Department of Health in coordination with the 
Philippine Health Insurance Corporation (PHILHEALTH); 
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[(f)] (H) the grant of twenty percent (20%) discount on medical and 
dental services, and diagnostic and laboratory fees provided under 
Section 4 [(e)] (G) hereof, including professional fees of attending 
doctors in all private hospitals and medical facilities, in accordance 
with the rules and regulations to be issued by the Department of 
Health, in coordinatioii with the Philippine Health Insurance 
Corporation; 
[(g)] (I) the grant of twenty percent (20%) discount in fare for domestic 
air and sea travel for the exclusive use or enjoyment of senior citizens; 
[(h)] (J) the grant of twenty percent (20%) discount in public railways, 
skyways and bus fare for the exclusive use and enjoyment of senior 
citizens; 
[(i)] (K) educational assistance to senior citizens to pursue post 
secondary, tertiary, post tertiary, as well as vocational or technical 
education in both public and private schools through provision of 
scholarship, grants, financial aid subsidies and other incentives to 
qualified senior citizens, including support for books, learning 
materials, and uniform allowance, to the extent feasible: Provided, That 
senior citizens shall meet minimum admission requirement; 
[(j)] (L) to the extent practicable and feasible, the continuance of the 
same benefits and privileges given by the Government Service 
Insurance System (GSIS), Social Security System (SSS) and PAG-IBIG, 
as the case may be, as are enjoyed by those in actual service. 
[(k)] (M) retirement benefits of retirees from both the government and 
private sector shall be regularly reviewed to ensure their continuing 
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responsiveness and sustainability, and to the extent practicable and 
feasible, shall be upgraded to be at par with the current scale enjoyed 
by those in actual service. 
[(l)] (N) to the extent possible, the government may grant special 
discounts in special programs for senior citizens on purchase of basic 
commodities, subject to the guidelines to be issued for the purpose by 
the Department of Trade and Industry (DTI) and the Department of 
Agriculture (DA); and 
[(m)] (0) provision of express lanes for senior citizens in all commercial 
and government establishments; in the absence thereof, priority shall 
be given to them. 
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The establishment may claim the discounts granted under SUB-SECTIONS (a), 
[(f), (g) and (h)] (C), (H), (I) AND (J) 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. Provided, 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 National Internal Revenue Code, 
as amended. 
THE DRUG OUTLETS MAY CLAIM THE DISCOUNTS GRANTED UNDER SUB- 
SECTION (B) AS TAX CREDIT TO BE SUBTRACTED FROM THE RESPECTIVE 
DRUG OUTLET'S TAX LIABILITY FOR THE SAME TAXABLE YEAR THAT THE 
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DISCOUNT IS GRANTED, AND SUBJECT TO THE REQUIREMENT OF PROPER 
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DOCUMENTATION; PROVIDED, THAT ANY EXCESS TAX CREDITS MAY BE 
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ACCUMULATED AND CARRIED OVER TO THE SUCCEDING PERIODS NOT 
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EXTENDING BEYOND THREE (3) YEARS FROM THE DATE EARNED. 
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to read as follows: 
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SEC. 2. Section 10 of the 'ExpandedSenior Citizens Act ofzoo3"is hereby amended 
"SEC. 10. Penalties. Any person who violates any provision of this Act 
shall suffer the following penalties: 
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(2) For any subsequent violation, a fine of not less than One hundred 
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thousand pesos (PlO0,OOO.OO) but exceeding [Two hundred thousand 
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pesos 
(P200,000.00)] 
FIVE 
HUNDRED 
THOUSAND 
PESOS 
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(P500,OOO.OO) and imprisonment for not less than two (2) years but not 
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less than six (6) years. 
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Any person who abuses the privileges AND INCENTIVES granted 
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herein shall be punished with a fine of not less than [Five thousand 
pesos (P5,000.00)] ONE HUNDRED THOUSAND PESOS (PlOO,OOO.OO) 
but not more than [Fifty thousand pesos (P50,000.00)] ONE MILLION 
PESOS, and imprisonment of not less than [six (6) months] ONE (1) 
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YEAR. 
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SEC. 3. Separability Clause. - If, for any reason, any part or provision of this Act is 
declared invalid, such declaration shall not affect the other provisions of this Act. 


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SEC. 4. Repealing Clause. - All laws, decrees, executive orders, issuances, rules or 
regulations or parts thereof, which are inconsistent with the provisions of this Act, are 
hereby deemed repealed, amended or modified accordingly. 
SEC. 5. Effictiviry - This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in two national newspapers of general circulation. 
Approved, 
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