Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
In order to give life to the constitutional provisions on the priority of the 
elderly in the adoption of social services and programs for social security under 
Article XV Section 4 and Article XIII Section 11, Republic Act No. 7432 or the 
"Senior Citizens Act", as amended by Republic Act No. 9257 or the "Expanded 
Senior Citizens Act of 2003", provided for the grant of benefits and special 
privileges for senior citizens. Section 4 f said of the Senior Citizens Act as 
amended, provided for a twenty percent (20%) discount to senior citizens . 
However, with the passage and implementation of Republic Act No. 9337 
or the EVAT Law imposing additional taxes for the purchase of goods, properties 
and services, the benefits provided by the Senior's Citizen Act were reduced. 
The Bureau of internal Revenue has issued Revenue Regulation 4-2006, 
amended by Revenue Regulation 1-2007, implementing the tax privileges 
provision of Republic Act No. 9257. The said regulation provides the application 
of 12% VAT to the discounted sale amount. As a result, Seniors Citizen 
effectively get a discount of only eight percent vis-a-vis the intended 20% under 
Republic Act No. 9257. 
Per newspaper reports, senior citizen groups and the Department of 
Finance have recommended that legislation be passed to increase the discount 
on purchases and restore the benefit. 
Thus, it is necessary to pass a bill to rectify and compensate the burden 
and negative effect of and caused by the increased value-added tax (VAT) on the 
discounted rate for purchases made by senior citizens covered by VAT. 
In view of the foregoing, the passage of this measure is earnestly sought. 
MAN 
VIL 
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First Regular Session 
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Introduced by Senator Manny Villar 
AN ACT AMENDING SECTION 4 OF REPUBLIC ACT NO. 7432, AS 
AMENDED BY REPUBLIC ACT NO. 9257, TO COMPENSATE THE NEGATIVE 
EFFECTS OF REPUBLIC ACT NO. 9337 ON THE DISCOUNT PRIVILEGE OF 
SENIOR CITIZENS PROVIDED THEREUNDER AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in 
Congress assembled: 
SECTION 1. Section 4 of Republic Act No. 7432, "AN ACT TO MAXIMIZE 
THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT 
BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES, as 
amended by Republic Act No. 9257, or the "EXPANDED SENIOR CITIZENS 
ACT OF 2003", is hereby further amended to read as follows: 
'SEC. 4. Privileges for the Senior Citizens. - The senior 
citizens shall be entitled to the following: 
(a) the grant of [twenty percent (20%)] Thirty-Four percent 
(34%) discount from all establishments relative to the utilization of 
services in hotels and similar lodging establishment restaurants and 
recreation centers, and purchase of medicines in all establishments 
for the exclusive use or enjoyment of senior citizens, including 
funeral and burial services for the death of senior citizens; 
(b) a minimum of [twenty percent (20%)) Thirty-Four percent 
(34%) discount on admission fees charged by theaters, cinema 
houses and concert ha&, circuses, carnivals, arid other similar 
places of culture, leisure and amusement for the exclusive use or 
enjoyment of senior citizens; 
(c) m; 
(d)xxx; 
(f) the grant of [twenty percent (20%)] Thirty-Four percent 
(34%) discount on medical and dental services, and diagnostic and 
laboratory fees provided under Section 4(e) hereof including 
professional fees of attending doctors in all private hospitals and 
medical facilities, in accordance with the rules and regulations to be 
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issued by the Department of Health, in coordination with the 
Philippine Health Insurance Corporation; 
(9) the grant of [twenty percent (20%)) Thin -Four percent 
(34%) discount in fare for domestic air and sea travel for the 
exclusive use or enjoyment of senior citizens; 
(h) the grant of twenty percent (20%)] Thirty-Four percent 
(34%) discount in public railways, skyways and bus fare for the 
exclusive use and enjoyment of senior citizens; 
(i) xxx; 
(k) xxx; 
(I) xxx; and 
(m)xxx." 
SECTION 2. Amendment of Implementing Rules and Regulations - 
Within thirty (30) days from the effectivity of this Act the Secretary of Social 
Welfare and Development shall formulate and adopt amendments to the existing 
rules and regulations implementing Republic Act No. 7432, as amended by 
Republic Act No. 9257, to carry out the objectives of this Act in consultation with 
the Department of Health, Department of Labor and Employment Department of 
Education, Department of Transportation and Communications, Department of 
Justice: Department of Interior and Local Government Department of Trade and 
Industry, Department of Finance, Commission of Higher Education, Technical 
Education and Skills 
Development Authority, 
National Economic and 
Development Authority, Housing and Urban Development Coordinating Council, 
Five (5) non-governmental organizations of people's organizations for the senior 
citizens duly accredited by the DSWD. 
SECTION 3. Repealing Clause - All laws, executive orders, rules and 
regulations, or any part thereof inconsistent herewith are deemed repealed or 
modified accordingly. 
SECTION 4. Effectivity -This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazelle or in at least two (2) newspapers of 
general circulation, whichever comes earlier. 
Approved, 
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