Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

188

HOUSE BILL Nt

INTRODUCED BY REPRESENTATIVE MILAGROS AQUINO - MAGSAYSAY

AN ACT AMENDING REPUBLIC ACT NO. 9994 PROVISIONS, OTHERWISE,
KNOWN AS THE “EXPANDED SENIOR CITIZENS ACT OF 2010”, PROVIDING FOR
ITS EXPANDED COVERAGE AND CLARIFYING AVAILMENT FOR BETTER
IMPLEMENTATION AND MAXIMIZED FUNCTIONALITY

EXPLANATORY NOTE

This bill seeks to amend Republic Act (RA) No. 9994, otherwise known as the “Expanded
Senior Citizens Act of 2010", expanding its coverage and clarifying availment of its benefits and
privileges, to ensure better implementation and maximize its functionality.

The original senior citizens law was passed in 1993 as Republic Act (RA) No. 7432
providing for the discount privileges and other free services which may be availed of by senior
citizens below a certain income bracket. The intention was to recognize their contribution to
Philippine society in their younger years, besides caring for our elderly. Ten (10) years later in
2003. RA 7432 was amended by Republic Act No. 9257, removing the financial status
requirement, and extended the discount privileges to ALL senior citizens regardless of economic
status, and clarifying under what conditions the benefits may be availed of. Unfortunately, there
were still some difficulty in the implementation due to some gray areas which needed to be
clarified further. Thus, seven (7) years later. in consideration of some additional benefits which
the government sought to grant, and the genuine desire to ensure efficient implementation of the
law. other relevant government agencies came together, and representatives from the private sector
and business establishments were duly consulted and asked for their own inputs. This resulted in
the more comprehensive RA 9994 passed in 2010, which included vital Social Protection
provisions, particularly social safety nets like the social pension, healthcare coverage, and disaster
management.

Nonetheless, it has been almost fifteen (15) years since the Senior Citizens Act was last
amended, and there have been significant changes in the situation of our Filipino elderly, including
their evolving needs as well as emerging trends in older persons care and interventions. There have


also been various implementing rules and supplemental guidelines that helped enforce RA 9994,
but were not disseminated widely so as to inform the general public. This proposed amendment
will now codify all these rules and guidelines for uniform application and common understanding
amongst all stakeholders.

In view of the foregoing, the passage of this bill is earnestly recommended.

HO. MILAGROS AQ! AYSAY


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

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 188

INTRODUCED BY REPRESENTATIVE MILAGROS AQUINO — MAGSAYSAY

AN ACT AMENDING REPUBLIC ACT NO. 9994, OTHERWISE KNOWN AS THE
“EXPANDED SENIOR CITIZENS ACT OF 2010”, PROVIDING FOR ITS EXPANDED
COVERAGE AND CLARIFYING AVAILMENT FOR BETTER IMPLEMENTATION
AND MAXIMIZED FUNCTIONALITY

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

SECTION 1. Section 3 of Republic Act (RA) No. 9994 which amended Sec. 2. Definition of
Terms of Republic Act No. 7432, as amended by RA 9257, is hereby further amended to read
as follows:

“Section 2. Definition of Terms - For purposes of this Act, these terms are defined as
follows:

(a) xxx
(b) xxx

(c) Lodging Establishments — refers to all facilities providing short-term accommodations,
lodgings, or temporary shelter such as motels, appartelles, condotels, pension houses, inns,
dormitories, including beach and mountain resorts, as well ts all applicable amenities.; x x
x

xxx

()xxx

(xxx

(g) xxx

(h)xxx

(i) “Exclusive Use and Enjoyment” — pertains to the reasonable limitation or restriction
imposed on the availment of the senior citizens’ privileges to avoid abuse and enjoyment
of the benefit by non-seniors;


(j) MEMC ~ Refers to the “Most Expensive Meal Combination” of single order or solo
meal packages being offered by the restaurant, and which shall be the basis of the
computation of the Senior Citizens 20% discount and 12% VAT;

(k) Restaurants ~ refers to food establishments duly-licensed and with business permits
issued by the local government units, offering to the general public regular and special
meals or menu, fast food, cooked food and short orders either for Dine-in, take-out/take-
home, delivery or drive-thru. Such eating-places may also serve beverages and drinks, and
may be classified as Quick-Service Restaurants (QSR) or “fast-foods”, Casual Dining and
Fine-Dining restaurants as defined below:

(i) Quick-Service Restaurants or fast-food chains, refer to restaurants with multiple
branches that have menu boards, where food item choices are listed. Customers
place their orders with the cashier and pay right after order are taken.

(ii) Casual and Fine-Dining Restaurants are restaurants where customers are seated first
before their food orders are taken by waiters. They are served at their tables and
pay only after they have consumed their meals.

(I) Double Discount — refers to another discounted rate or promotional offer separate and
independent of the senior citizens’ discount which may not be availed of on top of the 20%
senior citizens’ discount;

(m) Basic Necessities - As defined and listed in RA 7581, otherwise known as the “Price
Act”, as amended to include bottled water, instant noodles and LPG, refer to fresh
agricultural products or food items such as rice, com, bread, fresh, dried and canned fish
and other marine products, fresh pork, beef or poultry meat, fresh eggs, fresh milk and
processed milk, fresh vegetables, rootcrops, coffee, sugar, cooking oil, salt, and non-food
items like laundry soap, detergents, and drugs classified as essential by the DOH, and other
commodities as may be classified by the Department of Agriculture (DA) and Department
of Trade and Industry (DTD;

(n) Prime Commodities — As defined and listed in RA 7581 or the “Price Act” as amended
to include bottled water, instant noodles, and LPG, refer to fresh agricultural products and
food items like fresh fruits, flour, dried, processed and canned pork, beef, and poultry meat,
dairy products not falling under basic necessities noodles, onions, garlic, and all drugs not
classified as essential drugs by the DOH, and other commodities as may be classified by
the Department of Agriculture (DA) and Department of Trade and Industry (DTI):

(0) Recreation Centers — refers to facilities that provide services for recreation and physical
activity like ballroom dancing, yoga, badminton courts, bowling lanes, table or lawn tennis,
workout gyms, and martial arts facilities;


SECTION 2. Section 4 of RA 9994 on Privileges for the Senior Citizens is hereby amended to
read as follows:

“XXX

(a) the grant of twenty percent (20%) and exemption from the Value-Added Tax (VAT),
if applicable, on the sale of the following goods and services from all establishments x
x x including purchases from online merchants or Third-Party online or mobile e-
commerce platforms x x x

(1) on the purchase of medicines as listed in the formulary of essential drugs and
medicines by the Food and Drug Administration (FDA), including the purchase of
influenza and pneumococcal vaccines, and such other essential medical supplies,
accessories and equipment as enumerated in Department of Health (DOH)
Administrative Order No. 2012-007 such as medical devices composed of implants,
supplies, kits, and other equipment, including the use of radiation devices, dental,
and laboratory, hospital implement or apparatus, used/consumed during check-up
or confinement of a senior citizen regardless of the number of days of stay

All medical devices to be used at home, or for monitoring of a particular ailment or
disease, or to aid the maintenance of a treatment shall also be covered by the 20%
discount and 12% VAT excmption; this includes walking canes, crutches, adult
diapers, wheelchairs, commode chair, bed pan, body support, fracture sock, medical
support stockings, oxygen therapy unit (gauge, tank set), IV fluid and stand,
forceps, swabs, urine bag, catheters, glucometers. insulin syringe and needle,
thermometer, blood pressure apparatus, dialyzer, gloves, cotton, gauze, dressing,
masks, among others.

Further, discounted drugs and medicines shall apply to both generic and branded
medicines, including vitamins and minerals as may be prescribed by a physician
for a senior citizen, and organic or herbal medicines certified by the FDA with
known therapeutic value, and in whatever form such as oral medication in tablet,
capsule, syrup or suspension form, and non-oral medicines such as ointments,
salves, and eyedrops and cardrops; Provided, that the senior citizen availing of such
discount and VAT-exemption privilege is able to show a valid OSCA-issued Senior
Citizens ID card or any other proof of entitlement as authorized under Section 7
herein, with no need of a Purchase Booklet; x x x

(2) xxx
GB) xxx

(4) on medical and dental services, diagnostic and laboratory fees in all private
hospitals, 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); Provided, that a



hospital bed in a private hospital is deemed medically necessary to diagnose and treat
an illness or injury shall be granted 20% discount. The available room and board
accommodation deemed as medically necessary shall be granted 20% discount. All
existing privileges that are currently part of a hospital bed shall also accrue to the senior
citizen. The computation shall be the total bill less the 20% SC discount, with the
remaining 80% of the fees/charges that the SC is expected to shoulder charged to the
applicable Philhealth coverage;

(5) in actual fare for land transportation travel on public utility buses (PUBs), public
utility jeepneys (PUJs), taxis, Asian Utility Vehicles (AUVs), shuttle services,
Transport Network Vehicle Service (TNVS) and public railways, such as the Light Rail
Transit (LRT), Mass Rail Transit (MRT), the Philippine National Railway (PNR), and
such other public railway system that may be established hereafter; In addition, the
discount shall also apply to land travel incidentals such as toll fees and parking fees;

(6) on actual transportation fare for domestic air transport services and sea shipping
vessels and the like, based on the actual fare and advanced booking; Provided, the
discount not only applies to actual fare on the “carriage of passengers”, but also to air
and sea travel incidentals like airport terminal fees, port or pier fecs, nor travel taxes;

(7) on the utilization of services in hotels and lodging establishments, restaurants, and
tecreation centers; x x x

Provided, the discounted and VAT-exempt purchase of food, drinks. dessert and other
consumable items served by the restaurants offered for the consumption of the general
public whether for dine-in, take ou/take-home, drive-thru or delivery shall be for the
“exclusive use and enjoyment” of seniors or for their “personal consumption” only. For
this purpose, unless the restaurant or food establishment only offers group meals or
“food for sharing”, senior citizens are enjoined to avail of the Single Order or Solo
Meal packages to the amount of the “Most Expensive Meal Combination” (MEMC) to
facilitate the availment and easy computation of the discount and VAT exemption. As
such, the senior citizens discount shall not apply to whole cakes, except if'it’s the senior
citizens’ own birthday cake, whole pizza pies, or big buckets/boxes of fried chicken,
and will be computed only based on single/individual share. In the same manner, for
restaurants or food establishments which only serve “group” meals or “food for
sharing”, the equivalent share or portion only of an individual senior citizens with a
valid senior citizens ID or any other proof of entitlement as provided under Section 7
herein, shall enjoy the 20% discount and 12% VAT exemption. Such computation shall
be as follows:

Total Billing Amount
Number of Customers - Less 20% Discount X 12% VAT


(8) xxx

(9) on funeral and burial services for the death of senior citizens which covers the
purchase of the casket or um, embalming, cremation costs. pick-up of the body from the
morgue, transport for burial at his/her hometown, but excluding obituary publication and
the cost of the memorial lot; Provided, the discount that covers “Other RELATED
Services” applies to gravesite excavation or digging services; x x x“

SECTION 3. Section 4 (¢ ) on the grant of special discount on water and electricity uti
hereby amended to read as follows:

“Xxx

(c) the grant of a minimum of five (5%) discount relative to 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,
that the monthly consumption does not exceed one hundred fifty (150) kilowatt hours of
electricity and fifty (50) cubic meters of water; Provided further, that the privilege is
granted per household regardless of the number of senior citizens residing therein, and that
the registered senior citizen continues to live within the household address; x x x”

SECTION 4. Section 4 (j ) on the grant of special discounts in special programs for senior citizens
on the purchase of basic necessities is hereby amended to read as follows:

“XXX

(j))to the extent possible, the government may grant special discounts in special programs
for senior citizens on the purchase of basic necessities and prime commodities as listed in
Republic Act No. 7581, otherwise known as The Price Act. and subject to the guidelines
to be issued for the purpose by the Department of ‘Trade and Industry (DTI) and the
Department of Agriculture (DA); Provided, that said discount privilege shall be availed of
on a weekly basis in the amount of Two Thousand (2000.00) Pesos as the estimated
personal consumption and exclusive use and enjoyment of an individual senior citizen;
Provided further, that the senior citizen availing of the above-mentioned benefit is able to
show his/her OSCA-issued Senior Citizens ID card or any other alternative proof of
entitlement as authorized under Section 7 of this Act, without need of a Purchase Booklet;
Xxx*

SECTION 5. Taxation Matters/Treatment — Bi blishments granting the 20% senior
citizens discount on goods and services mentioned under Section 4 of RA 9994 may claim them
as TAX CREDITS on the cost of goods sold or services rendered: Provided, that the cost of the
discount shall be allowed as a tax credit from gross income in the same taxable year that the
discount is granted; Provided further, that the total amount of the claimed tax credit net of VAT,
if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to
proper documentation and relevant provisions of the Tax Reform for Acceleration and Inclusion
(TRAIN) Law.


In addition, Section (4) (b) of RA 9994 is likewise amended to read as follows:

“x x x (b) exemption from the payment of individual income taxes of senior citizens who are
considered minimum wage earners with P250,000.00 or below income in accordance with RA
10963, otherwise known as the TRAIN law; x x x “

SECTION 6. No Double Discount Policy - 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; Provided said promotional offer is duly-registered and
granted a special permit by the Department of Trade and Industry’s Fair Trade Enforcement
Bureau (DTI-FTEB).

In cases where the senior citizen is also a Person with Disability(PWD) entitled to a 20% discount
under his/her valid PWD identification card (ID), the senior citizen shall use either his/her PWD
ID Card or his/her OSCA-issued Senior Citizen ID card or any other authorized alternative proof
of entitlement as provided under Section 7 of this Act, to avail of the 20% discount.

SECTION 7. Computation of the 20% discount and VAT Exemption - The grant of the 20%
discount and exemption from the 12% VAT shall be computed in accordance with BIR Reenue
Regulations No. 7-2010. First determine the VAT-exempt sale from the selling price, and then
deduct the 20% discount from the VAT-exempt sale to come up with the amount due, as below:

Example: Selling Price: P1,000.00
VAT Rate: 12%

Formula:

VAT Exempt Sales = Selling Price + 1.12
Computation: P1,000.00 ~ 1.12 = P892.86

Senior Citizen Discount = VAT Exempt Sale x 20%
Computatio1
892.86 x 0.20 = P178.57

Formula:

Amount Collectible = VAT Exempt Sale - Senior Citizen Discount
Computation:

P892.86 — P178.57 = P714.29

Amount Due from SC: P714.29

Or

Sample 2: Selling Price: P100

P100— 12% = 88 (VAT-exempt amount)
P88 ~ 20% = 17.6 (discount due)

P88 — 17.6 = 70.4

Amount Due from SC: P70.4


SECTION 8. Availment of the Benefits/Proof of Entitlement — ‘The above-mentioned discount
and VAT-exemption privileges shall be availed of by senior citizens for their exclusive use and
enjoyment only, limited to their individual benefit and/or personal consumption, and NOT to be
abused nor extended to NON-senior citizens, in accordance with the original intention of this law.

a) In the availment of the privileges mentioned above, the senior citizen or a duly authorized
representative where applicable, may submit as proof of entitlement thereof ANY of the
following

(1) the senior citizens Identification (ID) Card issued by the Office of Senior Citizens
Affairs (OSCA) of the place where the senior citizen resides;

(2) the Philippine passport of the senior citizen; and

(3) other documents issued by the Philippine government that establish the Filipino
citizenship and age of at least sixty (60) years of the senior citizen claiming the benefit,
such as Land Transportation Office (LTO)-issued driver's license, GSIS/SSS/UMID
cards, Profession Regulatory Commission (PRC) license, Commission on Election
(COMELEC) voter’s ID, postal ID, or PhilSys National ID.

b)

The same benefits and privileges shal! be made available to Filipinos who hold foreign
passports but are registered as dual citizens and Filipinos who have re-acquired their
Filipino citizenship thru Republic Act No. 9225 or the Citizenship Retention and Re-
acquisition Act of 2003.

¢

‘The Senior Citizens’ Identification (ID) Card, which is the primary documentary proof of
entitlement to benefits and privileges under RA 9994, shall be issued by the respective
OSCA of the LGU where the senior resides, only to individuals who are proven:

(1) Filipino citizens by birth from parental nationality and ancestry, by naturalization, or
under a legal Dual Citizenship; and
(2) Are at least sixty (60) years old at the time of application for the SC ID card.

SECTION 9. Section 6 of RA 9994 on the Selection and Appointment of Office for Senior
Citizens Affairs (OSCA) Head, is hereby amended to read as follows:

“x x x There shall be established in all cities and municipalities an OSCA to be headed by a senior
citizen who shall be appointed by the mayor in his/her ministerial duty, after having been chosen
from a list of three (3) nominees recommended by a general assembly of DSWD-accredited or
LGU-registered senior citizens organizations of the city or municipality, a democratic process
which shall strictly be observed.

The OSCA Head shall be appointed to serve the interest of the senior citizens for a term of three
(3) years without reappointment or successive terms, except authorized extensions for a limited
period, if exigency so requires. The OSCA Head shall serve his/her full three (3) year term, which


shall not be co-terminous with the mayor. An OSCA Head may not be removed or replaced except
for reasons of death, permanent disability, or ineffective performance of his duties to the detriment
of fellow senior citizens. X x x

SECTION 10. Section 6 of RA 9994 on the Functions of the Office of Senior Citizens Affairs
(OSCA) is hereby amended to read as follows:

“xxx The OSC,

shall have the following functions:

(a) xxx

(b) xxx

(0) xxx

(d) To serve as a general information and liaison center for senior citizens and all relevant
programs, services and activities for them;

(¢) To monitor compliance of the provisions of this Act, particularly the grant of the special
discounts and privileges by ensuring the posting of proper notices and signages by
business establishments, as well as receive initial reports and complaints for violations
of RA 9994, especially on the non-grant of the senior citizens discount; Said posting of
proper notices and signages shall be made a requirement for the issuance and renewal
of business permits and other licenses, and shall be strictly coordinated with the LGU’s
appropriate departments and/or offices;

() Xxx

(g) To assist the senior citizens in asserting their rights under RA 9994 by receiving
complaints against any individual, establishment, business entity, institution, or agency
refusing to comply with the privileges under RA 9994 and resolving said concerns at
the LGU level with the support and assistance of the Mayor; The OSCA may utilize a
Complaints Form template/checklist citing the specific violation or provision not
honored, what kind/category of business, including its official business name, and
possible guidelines or regulations issued by the relevant government agency having
‘oversight over the business or industry. The OSCA Head may convene a Hearing Board
comprised of representatives from local senior citizens associations and the appropriate
government agencies which have jurisdiction over such transactions. If the complaint
remains unresolved, the OSCA Head may seek the assistance of the City Legal Officer,
and refer the matter to the Prosecutor's Office or the Department of Justice (DOJ) for
the filing of an actual case in the regional or municipal trial courts. x x x “

SECTION 11. Section 7 of RA 9994 amending the previous SEC. 10 on Penalties is hereby
amended to read as follows:

“Sec.10. Penalties — Any person, natural or juridical, who refuses to honor the senior
citizens identification card and other recognized proof of entitlement to the benefits and
privileges provided herein, or violates any of the provisions of this Act, the following

penalties:


(a) For the first violation, a fine of not less than one hundred thousand pesos (P100,000.00)
but not more than one hundred fifty thousand (P150,000.00), and an imprisonment of
not less than two (2) years but not more than six (6) years, and at the court’s discretion,
the establishment may also face temporary closure for a period deemed appropriate by
the authorities;

(b) For the subsequent violation, a fine of not less than two hundred thousand pesos
(P200,000.00) but not more than three hundred thousand pesos (P300,000.00), and
imprisonment of not less than six (6) years but not more than eight (8) years, and at the
court’s discretion, said business entity may also be banned ftom doing business for a
period determined by the authorities; and

(© Any person who abuses the privileges granted herein shall be punished with
imprisonment of not less than six (6) months and a fine of not less than one hundred
thousand pesos (P100,000.00) but not more than two hundred thousand pesos
(P200,000.00). x x x“

SECTION 12. Section 9 of RA 9994 on the Implementing Rules and Regulations is hereby to
read as follows:

“xx x Within ninety (90) days from the approval of this Act, the National Commission on Senior
Citizens, and all relevant government agencies and other stakeholders comprising its Inter-Agency
Advisory Body, shall formulate and adopt amendments to the existing rules and regulations
implementing RA 9994. x x x“

SECTION 13. Separability Clause — If any portion or provision of this Act is declared invalid or
unconstitutional, other provisions not affected thereby shall continue to be in full force and effect.

SECTION 14. Repealing Clause — All laws, decrees, executive orders, rules or regulations
contrary to or inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SECTION 15. Effectivity — This Act shall take effect fifteen (15) days after publication in the
Official Gazette or in newspaper of general circulation.

Approved