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

FIFTEENTH CONGRESS
First Regular Session

1504

House Bill No.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO.

EXPLANATORY NOTE

Article XIV of the Philippine Constitution declares:

“Section 1. The State shall protect and promote the right of all citizens to quality
education at all levels and shall take appropriate steps to make such education
accessible to all.

Section 2. The State shall:
1. Xxx
2. Xxx

3. Establish and maintain a system of scholarship grants, student loan
programs, subsidies, and other incentives which shall be available to deserving
students in both public and private schools, especially the underprivileged.”

Despite numerous attempts to implement educational reforms, programmes and
projects to address the key issues of access and quality of basic education, relevance
and efficiency of the country’s education system; many problems are still besetting the
education in the Philippines and it is, basically, because of poverty that hinders the
access of many Filipinos to education.

Thus, this bill seeks to lessen the financial burden of underprivileged college
students by giving them discounts on basic and education services.

Specifically, the proposal provides that underprivileged college students shall be
entitled to five percent (5%) discount on food establishments, medicines, textbooks and
school supplies, tuition fees, miscellaneous and other school fees.

Therefore, passage of this bill is earnestly sought

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MARCELINO “MARCY” R. TEQDORO

Representative, 1* District
City of Marikina


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

FIFTEENTH CONGRESS
First Regular Session

House Bill No,__ 1904

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

AN ACT
GRANTING DISCOUNTS TO UNDERPRIVILEGED COLLEGE STUDENTS ON BASIC
AND EDUCATION SERVICES

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 “Underprivileged College
Students’ Discounts Act".

SEC. 2. Declaration of Policy. — It is the policy of the State to prioritize quality
education and take appropriate steps to make such education accessible to all.

SEC. 3. Definition of Terms. — As used in this Act, the following terms shall have
the following meaning:

(a) Underprivileged college students refer to Filipino students enrolled in the tertiary level
whose parents have a gross annual income of not more than One hundred thousand
pesos (P100,000.00), subject to review by the National Economic and Development
Authority (NEDA) every three (3) years.

These also include Filipino college students who opt to take part-time jobs to subsidize
their education and whose income combined with the annual gross income of their parents
do not exceed One hundred thousand pesos (P100,000.00), subject to review by the
NEDA every three (3) years.

(b) Discounts refer to the amount deducted or counted off from the cost of goods under
basic services and from fees to be collected on education services.

(c) Basic services refer to basic necessities such as food for snacks and meals and
medicines.

(d) Education services refer to education-related expenditures such as- tuition,
miscellaneous and other school fees, books and school supplies.

SEC. 4. Discounts for Underprivileged College Students. — Underprivileged
college students shall be entitled to the following:

(a) On Food Establishments. — A five percent (5%) discount shall be granted to
underprivileged college students by food establishments such as food chains, canteens
and restaurants anywhere in the country: Provided, That private food establishments may
claim the cost as allowable tax deduction from the gross income in the computation of the
income tax, in accordance with the provisions of the National Internal Revenue Code of
1997, as amended;

(b) On Medicines. — A five percent (5%) discount shall be granted to underprivileged
college students by pharmacies or drug stores anywhere in the country: Provided, That
these pharmacies or drug stores may claim the cost as allowable tax deduction from the
gross income in the computation of the income tax, in accordance with the provisions of
the National Internal Revenue Code of 1997, as amended:


(c) On Textbooks and School Supplies. — A five percent (5%) discount shall be granted to
underprivileged college students by establishments anywhere in the country that sell
reference books for college and school supplies: Provided, That these establishments
may claim the cost as allowable tax deduction from the gross income in the computation of
the income tax, in accordance with the provisions of the National Internal Revenue Code
of 1997, as amended; and

(d) On Tuition Fees, Miscellaneous and Other School Fees. — A five percent (5%) discount
shall be granted to underprivileged college students by public and private schools where
they are enrolled anywhere in the country, without prejudice to their right in availing
themselves of other educational assistance given by the school and the government such
as the "Study Now, Pay Later Plan” under Republic Act No. 6728: Provided, That the
schools may claim the cost as allowable tax deduction from the gross income in the
computation of the income tax, in accordance with the provisions of the National Internal
Revenue Code of 1997, as amended.

SEC. 5. Limitations. — The right of any underprivileged college student to avail
himself/herself of the discounts under this Act shall not apply if:

(a) He/She fails for one (1) semester in the majority of the academic subjects in which
he/she has enrolled during the course of his/her study, unless such failure is due to some
valid cause beyond his/her control;

(b) He/She fails to finish his/her course within two (2) years after the year within which
he/she should have graduated;

(c) He/She stops schooling for one (1) school year, unless such is due to some valid cause
beyond his/her control; and

(d) He/She is convicted of any crime under the Revised Penal Code.

SEC. 6. Role of the Commission on Higher Education (CHED). - The CHED shall
be in charge of determining the qualified beneficiaries under this Act through its Office of
Student Services (OSS). The CHED Chairman shall include in the regular functions of the
OSS the following additional functions:

(a) To plan, implement and monitor yearly work programs, evaluate and submit annual
reports in pursuance of the objectives of this Act;

(b) To screen applicants, receive documentary proof, and identify who are the eligible
underprivileged college students based on the provisions of this Act;

(c) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged college students;

(d) To issue identification cards which shall be valid anywhere in the country as proof of
the eligibility of the underprivileged college students to avail themselves of the discounts;

(e) To maintain and regularly update, on a quarterly basis, the list of underprivileged
college students who avail themselves of the discounts and to review, evaluate and
assess their academic standing;

(f) To cancel the identification cards issued for those disqualified under Section 5 of this
Act;

(g) To provide information to the affected establishments under Section 4 of this Act for
any question regarding the eligibility of any underprivileged college student claiming the
discounts through the CHED website;

(h) To monitor the extent of implementation of this Act and to coordinate with the
concerned agencies regarding the imposition of penalties on violators of this Act; and


(i) To perform such other functions as may be determined by the CHED Chairman in the
implementation of this Act.

SEC. 7. Tax Incentives. — Discounts granted by establishments to underprivileged
college students under this Act shall be treated as allowable deduction from the gross
income in the computation of the income tax, in accordance with the provisions of the
National Internal Revenue Code of 1997, as amended.

SEC. 8. Implementing Rules and Regulations. - The CHED, in coordination with
the NEDA, the Department of Social Welfare and Development (DSWD), the Department
of Health (DOH), the Department of Trade and Industry (DTI), the Department of Finance
(DOF), and such other gencies concerned with the establishments which may be affected
by this Act, shall issue the implementing rules and regulations to carry out the objectives of
this Act within thirty (30) days after this Act takes effect.

SEC. 9, Penalties. - The first violation of any provision of this Act shall cause the
suspension of the license to operate or the business permit of the establishment or the
person concerned for not less than one (1) week but not more than four (4) weeks and a
fine of not less than Twenty thousand pesos (P20,000.00) but not more than Fifty
thousand pesos (P50,000.00).

The second violation of any provision of this Act shall cause the suspension of the license
to operate or the business permit of the establishment or the person concemed for not less.
than four (4) weeks and a fine of not less than Fifty thousand pesos (P50,000.00) but not
exceeding Two hundred fifty thousand pesos (P250,000.00): Provided, however, That the
procedure of notice and hearing shall have been complied with prior to the imposition of
the

said penalties.

If the offender is a corporation, organization or any similar entity, the official thereof directly
involved shall be held liable therefor.

SEC. 10. Enforcement. — Pursuant hereto, the DTI, the DOH and the local
government units (LGUs), in coordination with the CHED, are mandated to implement the
provisions of this Act. After 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
business entity that fails to
abide by the provisions of this Act.

SEC. 11. Separability Clause. — If any provision or part hereof is held invalid or
unconstitutional, the other sections or provisions hereof shall not be affected thereby and
shall remain in force and effect.

SEC. 12. Repealing Clause. — All laws, executive orders, decrees, instructions,
rules and regulations contrary to or inconsistent with any provision of this Act are hereby
amended, repealed or modified accordingly.

SEC. 13. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in any newspaper of general circulation.

Approved,