ms sePRESE

Seas KA
> RECEIVED
Republic of the Philippines © pmres
House of Representatives
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6493

Introduced by Representative “Kuya” Jose Antonio R. Sy-Alvarado

EXPLANATORY NOTE

This bill seeks to provide a twenty percent (20%) discount privilege
on the sale of goods and services for the active members of the Armed
Forces of the Philippines (AFP) and the Philippine National Police (PNP).

The Constitution provides that the Armed Forces of the Philippines is
the protector of the people and of the State. It likewise provides for the
establishment of a police force responsible for the maintenance of peace and
order and public safety.

Our men and women in uniform exemplify remarkable dedication,
commitment and loyalty for our country. Despite modest salary, they repel
threats and aggression and suffer untold hardships during military or police
operations. Indeed, for all the many sacrifices of our valiant men and
women in uniform, they should not only be commended but should be
granted additional benefits.

Thus, providing for a twenty (20%) percent discount privilege on the
sale of goods and services for the consumption of the active members of the
AFP and PNP is our little way of recognizing their sacrifices in protecting
and maintaining our national security, territorial integrity and the
preservation and maintenance of peace, public order and public safety.

In view of the foregoing, approval of this bill is highly-arid earnestly
recommended.

“KUYA” Ji ANTONIO R. SY-ALVARADO

Bill Drafting Service


Bweovaneune

cr

2

3B

4

Republic of the Philippines:
House of Representatines
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6493

Introduced by Representative “Kuya” Jose Antonio R. Sy-Alvarado

AN ACT
PROVIDING FOR A TWENTY PERCENT (20%) DISCOUNT
PRIVILEGE ON THE SALE OF GOODS AND SERVICES FOR
ACTIVE MEMBERS OF THE ARMED FORCES OF THE
PHILIPPINES (AFP) AND PHILIPPINE NATIONAL POLICE (PNP)

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

SECTION 1. Short Title. — This Act shall be known as the “AFP-PNP
Discount Privilege Act.”

SEC. 2. Declaration of State Policy. —\t is the policy of the State to
strengthen the nationalist consciousness of the military and police personnel,
develop professionalism and patriotism among the members of the armed forces
and the police force, and provide them adequate remuneration and benefits.

SEC. 3. Discount Privilege. - Members of the Armed Forces of the
Philippines (AFP) and Philippine National Police (PNP) are entitled to twenty

percent (20%) discount and exemption from the value-added tax (VAT), if

Bill Drafting Service


15

16

v7

18

19

20

21

applicable, on the following sale of goods and services for their exclusive use
and enjoyment or availment:

(a) Fare on domestic air and sea travel based on the actual fare,
advanced booking and other similar discounted fare;

(b) Actual fare for land transportation travel in public utility buses,
jeepneys, taxis, shuttle services and public railways, light rail transit, mass rail
transit, and any transportation fare for domestic transport of passengers by air or
sea vessels;

(c) Utilization of services in hotels and similar lodging establishments,
restaurants and recreation centers;

(d) Admission fees charged by theaters, cinema houses and concert
halls, circuses, carnivals and other similar places of culture, leisure and
amusement; and

(e) Purchase of medicines in all drugstores.

The discount privileges may not be claimed if the member of the AFP or
PNP claims a higher discount as may be granted by the establishment or under
other existing laws or in combination with other discount programs.

SEC. 4. Qualified Beneficiary. — Only members of the AFP and PNP
who are in active service, are entitled to the benefits under this Act. Military
and police reservists are not eligible to enjoy the benefits provided under this

Act unless the reservists are called upon to serve in active duty.


1

14

15

16

v7

20

2

22

SEC. 5. Availment.—Members of the AFP and PNP may avail of the
twenty percent (20%) discount upon presentation of a valid identification
card, AFP or PNP booklets and other supporting documents duly issued by the
Department of National Defense or Philippine National Police.

SEC. 6. Tax Deduction. — The companies and establishments that
extend the discount privilege under this Act to the members of the AFP and
PNP shall be allowed to claim the discounts granted as tax deductions based on
the net cost of the goods sold or services rendered: Provided, That the cost of
the discount shall be allowed as deduction for the 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 subject to proper
documentation and to the provisions of the National Internal Revenue Code, as
amended.

SEC. 7. Penalties. — Any person who refuses to grant the twenty percent
(20%) discount privilege mentioned under this Act shall be punished with the
following penalties:

(a) Imprisonment of not less than two (2) years but not more than six
(6) years and a fine of not less than Fifty thousand pesos (P50,000.00) but not
more than One hundred thousand pesos (P100,000.00) for the first violation;

(b) For any subsequent violation, imprisonment of not less than two

(2) years but not more than six (6) years and a fine of not less than One hundred
3


10

nu

15

16

wv

18

19

20

a

thousand pesos (P100,000.00) but not more than Two hundred thousand pesos
(P200,000.00).

Any member of the AFP and PNP who abuses the privileges granted
under this Act shall be punished with imprisonment of not less than six (6)
months and a fine of not less than Fifty thousand pesos (P50,000.00) but not
more than One hundred thousand pesos (P100,000.00).

If the offender is a corporation, partnership, organization or any similar
entity, the officials thereof directly involved such as the president, general
manager, managing partner, or such other officers charged with the
management of the business affairs shall be liable therefor. If the offender is an
alien or a foreigner, the offender shall be deported immediately after service of
sentence.

Upon filing of an appropriate complaint, and after due notice and hearing,
the proper authorities may also cause the cancellation or revocation of the
business permit, permit to operate, franchise and other similar privileges
granted to any person, establishment or business entity that fails to abide by the
provisions of this Act.

SEC. 8. Implementing Rules and Regulations. ~ Within sixty (60) days
from the approval of this Act, the Secretary of National Defense and the
Secretary of the Interior and Local Government shall promulgate the pertinent

rules and regulations for the effective implementation of this Act.


1

SEC. 9. Repealing Clause. — All laws, presidential decrees, executive
orders, and rules and regulations or part thereof, contrary to or inconsistent
with the provisions of this Act, are hereby repealed or modified accordingly.

SEC. 10. Effectivity. — This Act Shall take effect fifteen (15) days after

its publication in the Official Gazette or in a newspaper of general circulation.

Approved,