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Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
TWENTIETH CONGRESS  
HOUSE BILL NO. 1924 
___________________________________________________________________________ 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
___________________________________________________________________________ 
AN ACT ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS AND 
SERVICES OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES 
EXPLANATORY NOTE 
Senior citizens and persons with disabilities (PWDs) represent some of the most 
vulnerable members of our society who often face financial challenges due to limited income 
and additional expenses related to health and daily living. Granting them continued discounts 
is not only a recognition of their contributions to our communities but also a necessary support 
that helps improve their quality of life, ensures their access to essential goods and services, and 
affirms our commitment to social justice and inclusivity. 
This legislative measure seeks to strengthen the preferential treatment given to senior 
citizens and PWDs by establishing a more comprehensive and coordinated approach to 
delivering essential programs and services. By enhancing their access to these benefits, the 
measure reinforces the State’s constitutional mandate to promote a just and inclusive society, 
advance social justice, and alleviate poverty. 
This bill stems from some clarifications and reinforcement of existing entitlements 
granted under Section 4 of Republic Act No. 7432 (Senior Citizens Act), as amended, and 
Section 32 of Republic Act No. 7277 (Magna Carta for Disabled Persons), as amended. These 
include the mandatory twenty percent (20%) discount and exemption from the value-added tax 
(VAT) on specified goods and services, along with special discounts on the purchase of basic 
necessities and prime commodities. The bill also affirms that these mandatory benefits must be 
granted over and above any promotional or sale-related discounts offered by business 
establishments. It further stipulates that no business may require the presentation of discount 
booklets to claim these benefits, thereby simplifying access for senior citizens and PWDs. To 
address recurring disputes over compliance, the bill clearly states that general discounts or 
promotions available to all consumers cannot be counted as fulfillment of the legal discount 
obligations to senior citizens and PWDs. This provision aims to eliminate common points of 
confusion and ensure consistent enforcement of the law.  
In balancing the interests of beneficiaries and business stakeholders, the bill also 
provides that the mandatory discounts, including the input VAT attributable to VAT-exempt 
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sales and special discounts on essential goods, shall be treated as deductible expenses under 
Section 34 of the National Internal Revenue Code of 1997, as amended. This ensures that 
businesses are appropriately compensated while continuing to support the welfare of vulnerable 
groups. 
A counterpart measure was filed in the 19th Congress, principally authored by 
Representatives Joey Sarte Salceda, Rodolfo “Ompong” M. Ordanes, and Alfelito “Alfel” M. 
Bascug. The bill was passed on Third Reading on May 21, 2024, and was forwarded to the 
Senate the following day, May 22, 2025. 
In view of the foregoing, the passage of this bill is earnestly recommended. 
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 


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Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
TWENTIETH CONGRESS  
HOUSE BILL NO.  1924 
___________________________________________________________________________ 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
___________________________________________________________________________ 
AN ACT ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS AND 
SERVICES OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy. – The State shall promote a just and dynamic social 
order that shall ensure the nation’s prosperity and independence as well as free its people from 
poverty. The State shall provide social justice in all phases of national development, and value 
the dignity of every human person, and guarantee full respect for human rights. 
The State shall adopt an integrated approach to health development which shall 
endeavor to make essential goods, health, and other social services available to all at affordable 
cost. There shall be priority for the needs of the underprivileged, sick, elderly, and persons with 
disabilities. 
To this end, the State shall preserve the preferential treatment accorded to senior 
citizens and persons with disabilities, and proportionately distribute its costs between the 
government and the people. 
SECTION. 2. Applicability of Discounts of Senior Citizens and Persons with 
Disabilities to Goods and Services on Promotional Offer. – The discount granted to senior 
citizens and persons with disabilities, including the twenty percent (20%) discount and 
exemption from the  


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value-added tax (VAT) on goods and services, or the special discount on purchase of basic 
necessities and prime commodities, as provided under Section 4 of Republic Act (RA)  
No. 7432, otherwise known as “Senior Citizens Act,” as amended, and Section 32 of RA  
No. 7277, otherwise known as “Magna Carta for Disabled Persons with Disability,” as amended, 
shall be in addition to any prevailing promotional offers or discounts extended by business 
establishments, if any, has been provided, but in no way that it will require presentation of 
booklets in the procurement of goods. 
In no case shall a promotion or discount offered by a business establishment to the 
general public be considered in compliance with Section 4 of RA No. 7432, as amended, and 
Section 32 of RA No. 7277, as amended.  
SECTION. 3. Tax Treatment of Discounts. – The twenty percent (20%) discount for 
senior citizens or persons with disabilities applied on certain goods and services, the input tax 
attributable to the VAT-exempt sale to senior citizens and persons with disabilities, and the 
special discount on basic necessities and prime commodities, shall be treated as part of 
deductible expense pursuant to Section 34 of the National Internal Revenue Code of 1997, as 
amended.  
The establishments may claim the discounts granted under subsections (a), (c), and (j) 
of Section 4 of RA No. 7432, as amended, and subsection (a), paragraphs (1), (2), (3), (5), (6), 
(7) and (8) and subsection (d) of Section 32 of RA No. 7277, as amended, as deduction based 
on the net cost of 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, 
as amended.  
SECTION. 4. Implementing Rules and Regulations. – The National Commission of 
Senior Citizens and the National Council on Disability Affairs, in consultation with the 
Department of the Interior and Local Government, Department of Trade and Industry, 
Department of Information and Communications Technology, Department of Health, 
Department of Finance, Bureau of Internal Revenue, and other relevant agencies and 
stakeholders, shall promulgate the necessary rules and regulations for the effective 
implementation of the provisions of this Act.  


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SECTION. 5. Separability Clause. – If any provision of this Act is declared invalid or 
unconstitutional, other provisions hereof which are not affected thereby shall remain in full 
force and effect.  
SECTION. 6. Repealing Clause. – The pertinent provisions of the following laws are 
hereby repealed, amended, or modified accordingly:  
(a) Section 4 of RA No. 7432, as amended by RA No. 9994, otherwise known as the “Ex-
panded Senior Citizens Act of 2010,” insofar as purchase of goods and services which 
are on promotional discount is concerned;  
(b) Section 32 of RA No. 7277, as amended by RA No. 10754, insofar as higher discount 
granted by the commercial establishment, other existing laws or in combination with 
other discount programs is concerned. 
(c) Section 32(j) of RA No. 9442, entitled “An Act Amending Republic Act No. 7277, 
Otherwise Known as the ‘Magna Carta for Disabled Persons, and for Other  
Purposes’ ”; and  
(d) Section 4(l) of RA No. 9257, entitled “An Act Granting Additional Benefits and  Priv-
ileges to Senior Citizens Amending for the Purpose Republic Act No. 7432, Otherwise 
Known as ‘An Act to Maximize the Contribution of Senior Citizens to Nation Building, 
Grant Benefits and Special Privileges for the Other Purposes’ ”. 
All other laws, rules and regulations, and other issuances or parts thereof, which are 
inconsistent with the provisions of this Act, are hereby repealed, amended, or modified 
accordingly.  
SECTION. 7. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,