TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. ^14
of li’.’ S’l >
25 AUG -5 P3 37
RfXEID 0\
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
RATIONALIZING THE DISCOUNTS AND EXEMPTION OF VALUE-ADDED TAX 
(VAT) ON ELECTRICITY AND WATER CONSUMPTION OF SENIOR CITIZENS, 
FURTHER AMENDING REPUBLIC ACT NO. 9994, OTHERWISE KNOWN AS 
THE "EXPANDED SENIOR CITIZENS ACT OF 2010"
EXPLANATORY NOTE
The welfare of senior citizens is a key concern in the Phiiippines, as they 
constitute a significant and growing segment of the population. As they reach their 
advanced years, it becomes increasingiy important for the government to ensure their 
well-being, particularly in terms of their economic stability and access to essential 
services. Many senior citizens face chalienges due to fixed incomes, rising prices, and 
increasing utility costs. This places a heavy burden on their finances, especially in 
terms of their monthly expenses for electricity and water.
This bill seeks to provide much-needed financial relief to senior citizens by 
granting them a minimum of five percent (5%) discount on their first 150 kiiowatt- 
hours (kWh) of eiectricity consumption and on their first 50 cubic meters of water 
consumption. Additionaily, the bill proposes to exempt senior citizens from the Value- 
Added Tax (VAT) on these utilities. This measure seeks to ease the financial pressures 
on senior citizens, aiiowing them to live with greater dignity and less economic strain, 
especiaiiy as they transition into their retirement years.


The proposed bill builds upon Republic Act No. 9994, otherwise known as the 
"Expanded Senior Citizens Act of 2010," which already provides various benefits to 
senior citizens. This new measure aims to further strengthen the law by focusing on 
two critical utilities—electricity and water—which are essential for the daily lives of our 
elderly citizens.
By amending the provisions of the Expanded Senior Citizens Act, the bill 
provides tangible, immediate relief to senior citizens, ensuring that they can afford 
basic services that many of us often take for granted. By addressing these key utilities, 
the government demonstrates its commitment to improving the quality of life for 
senior citizens, making it easier for them to live independently and with dignity.
A similar version of this bill was filed by Senator Grace Poe in the 19th Congress.
In conclusion, this bill is a vital step toward improving the lives of senior citizens 
by addressing two of their most significant financial concerns; the rising costs of 
electricity and water. It is a reflection of the government's commitment to ensuring 
that the elderly receive the respect, support, and assistance they deserve. Immediate 
passage of this bill is earnestly sought in order to provide meaningful financial relief 
to senior citizens and further enhance their quality of life.
JINGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 914
01 III,' .-•■■'■iivjr'
25 AUG-5 P3 :37
RIXEIVED SV,
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
RATIONALIZING THE DISCOUNTS AND EXEMPTION OF VALUE-ADDED TAX 
(VAT) ON ELECTRICITY AND WATER CONSUMPTION OF SENIOR CITIZENS, 
FURTHER AMENDING REPUBLIC ACT NO. 9994, OTHERWISE KNOWN AS 
THE "EXPANDED SENIOR CITIZENS ACT OF 2010"
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Section 4 (c) of Republic Act No 7432, as amended by Republic Act
2 
No. 9257, otherwise known as the "Expanded Senior Citizens Act of 2003", and as
3 
further amended by Republic Act No. 9994, otherwise known as "Expanded Senior
4 
Citizens Act of 2010", is hereby amended to read as follows:
5 
"Sec. 4. Privileges for the Senior Citizens -
6 
"X X X
7 
"(c) the grant of a minimum of five percent (5%)
8 
discount [relative to the monthly utilization of water and
9 
electricity supplied by the public-utilities] ON THE FIRST
10 
ONE HUNDRED FIFTY (150) KILOWATT HOURS (KWH)
11 
AND ON THE FIRST FIFTY (50) CUBIC METERS
12 
RELATIVE TO THEIR MONTHLY UTILIZATION OF
13 
WATER AND ELECTRICITY SUPPLIED BY THE PUBLIC
14 
UTILITIES, AND EXEMPTION FROM THE VALUE ADDED
15 
TAX (VAT): Provided, That the individual meters for the


1 
foregoing utilities are registered in the name of the senior
2 
citizen residing therein: [Provided,-further, That the monthly
3 
consumption docs not exceed one hundred kilowatt hours
4 
(100 kWh) of electricity and thirty cubic meters (30 m3) of
5 
\Nutcr\Provided, furthermore, That the privilege is granted per
6 
household regardless of the number of senior citizens residing
7 
therein."
8 
Sec. 2. Implementing Rules and Regulations. - Within thirty (30) days from the
9 
enactment of this law, the concerned agencies named under Republic Act No. 9994
10 
shall promulgate the implementing rules and regulations.
11 
Sec. 3. Repealing Clause. - Any law, presidential decree or issuance, executive
12 
order, letter of instruction, rule or regulation inconsistent with the provisions of the
13 
Act is hereby repealed or modified accordingly.
14 
Sec. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
15 
publication in the Official Gazette or in at least two (2) newspapers of general
16 
circulation.
Approved,