Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City

First Regular Session
SIXTEENTH CONGRESS

HOUSE BILL No.. 3826

Introduced by: REPRESENTATIVE EMI CALIXTO-RUBIANO

Explanatory Note

Many of us consider disability as the inability of the individual to function as a
normal person. However, in a study made by Handicap International, there has been a
shift in the way people think about disability. From a notion of being a personal tragedy
and a charity issue, it has now been considered as a rights and development issue.
Disability does not only refer to the individual but also to the barriers imposed by society
when it does not provide equal opportunities and due attention to the rights of
individuals with impairments.

The United Nations Convention on the Rights of Persons with Disabilities
(CRPD) recognizes that “disability is an evolving concept, resulting from the interaction
between persons with impairments and attitudinal and environmental barriers that
hinder their full and effective participation in society on an equal basis with others”. In
the 2004-Joint Position Paper of ILO, UNESCO and WHO, they recommended the
Community-Based Rehabilitation (CBR) as a strategy for rehabilitation, equalization of
opportunities, poverty reduction, and social inclusion of persons with disabilities (PWD).
The CBR is used in over 90 countries and adopted in the Philippines in 2005 thru
Executive Order No. 437: Encouraging the implementation of CBR in all local
government units in the Philippines and allocating funds to support it. In April 2008, the
Philippines ratified the CRPD, thereby accepting the legal obligation to protect and
promote the rights of PWDs.

Even before the UN Convention on CRPD, the Philippine government was
already cognizant of the rights and privileges of the PWD. In fact to date, three
landmark legislations were already passed to ensure legal protection in their favor. This
is aside from other executive issuances which also caters the needs and welfare of the
PWD. First of the landmark legislation is RA 7227 (1992), otherwise known as the
Magna for Disabled Persons, which provided for the rehabilitation, self-development
and self reliance of the PWD and their integration in the mainstream of society. Second
is RA 9442 (2007), an Act which amended RA 7277, granting additional privileges and
incentives as well as prohibitions on verbal, non-verbal ridicule and vilification against


PWD. The most notable portion of the amendment under this law was the grant of at
least twenty percent (20%) discount to PWDs from all establishments including hotels,
restaurants and recreation centers; theater, cinema houses; purchase of medicines in
all drugstores; medical and dental services; fare for domestic sea and air travel; public
railways, skyways, bus fares. The third measure is RA 10070 (2010), an Act which
provides for the establishment of institutional mechanisms to ensure the implementation
of programs and services for PWDs by directing the setting up of Persons with Disability
Affairs Offices (PDAO) in all provinces, cities and municipalities to be headed by a
qualified disabled person.

With the confluences of these measures and issuances, it seems that
substantially, the rights and privileges of PWDs are, in a way, sufficiently addressed
already. However, taking our cue from the UN convention that disability is an evolving
concept, the author deems it imperative for the government to constantly maintain a
close monitoring of the conditions and welfare of the disadvantaged sectors of the
Philippine society such as PWDs.

This measure seeks to further amend Section 32 of RA 7277, as amended. The
aim is simply to fill-in an additional provision that PWD shall be exempt from the Value
Added Tax (VAT) on top of the already existing discounts on foods and services
enumerated under Section 32 of RA 9442. The measure will simply equalize the grant
of privileges vis-a-vis that of the senior citizens, who were granted the same exemption
by virtue of Republic Act No. 9994. This measure is the author's humble initiative of
responding into the universal challenge to protect the rights and welfare of the PWD

In view of the foregoing, approval of this bill is strongly recommended.

elle
EMI CALIXTO-RUBIANO:

Representative
Lone District of Pasay City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

First Regular Session
SIXTEENTH CONGRESS

HOUSE BILL No.. 3826

Introduced by: REPRESENTATIVE EMI CALIXTO-RUBIANO,

AN ACT EXEMPTING PERSONS WITH DISABILITY FROM THE
VALUE-ADDED TAX ON CERTAIN GOODS AND SERVICES,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7277, AS AMENDED,
OTHERWISE KNOWN AS “MAGNA CARTA FOR PERSONS WITH DISABILITY”,
AND FOR OTHER PURPOSES

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

SECTION 1. Section 32 of Republic Act No. 7277, otherwise known as the
“Magna Carta for Persons with Disability’, as amended, is hereby amended to read as
follows:

“SEC. 32. Persons with disability shall be entitled to the following:

“(a) At least twenty percent (20%) discount from all establishments relative

to the utilization of all services in hotels and similar lodging
establishments; restaurants and recreation centers for the exclusive use
or enjoyment of persons with disability;

(b) A minimum of twenty percent (20%) discount on admission fees
charged by theaters, cinema house, concert halls, circuses, carnivals and
other similar places of culture, leisure and amusement for the exclusive
use or enjoyment of persons with disability;

(©) At least twenty percent (20%) discount on the purchase of medicines
in all drugstores for the exclusive use or enjoyment of persons with
disability; :

(d) At least twenty percent (20%) discount on medical and dental services
including diagnostic and laboratory fees such as, but not limited to x-rays,
computerized tomography scans and blood tests, in all government


facilities, subject to guidelines to be issued by the Department of Health
(DOH), in coordination with the Philippine Health Insurance Corporation
(PHILHEALTH);

(€) At least twenty percent (20%) discount on medical and dental services.
including diagnostic and laboratory fees, and professional fees of
attending doctors in all private hospitals and medical facilities, in
accordance with the rules and regulations to be issued by the DOH, in
coordination with the PHILHEALTH;

(f) At least twenty percent (20%) discount on fare for domestic air and
sea travel for the exclusive use or enjoyment of persons with disability;

(@) At least twenty percent (20%) discount in public railways, skyways
and bus fare for the exclusive use and enjoyment of persons with
disability;

(h) EXEMPTION FROM THE VALUE ADDED TAX (VAT) OF ALL THE
ITEMS AND SERVICES ENUMERATED UNDER PAR. (a) to (g)
ABOVE-CITED. PROVIDED, HOWEVER, THAT THOSE ITEMS AND
SERVICES ARE COVERED AS ALLOWABLE EXEMPTIONS UNDER
REPUBLIC ACT NO. 7716;

(i) Educational assistance to persons with disability, for them to pursue
primary, secondary, tertiary, post tertiary, as well as vocational or
technical education, in both public and private schools, through the
provision of scholarships, grants, financial aids, subsidies and other
incentives to qualified persons with disability, including support for books,
learning materials, and uniform allowance to the extent feasible:
Provided, That persons with disability shall meet minimum standard
requirements;

() To the extent practicable and feasible, the continuance of the same
benefits and privileges given by the Government Service Insurance
System (GSIS), Social Security System (SSS), and PAG-IBIG, as the
case may be, as are enjoyed by those in actual service;

(k) To the extent possible, the government may grant special discounts in
special programs for persons with disability on purchase of basic
commodities, subject to guidelines to be issued for the purpose by the
Department of Trade and Industry (DTI) and Department of Agriculture
(DA); and :

(|) Provision for express lanes for persons with disability in all commercial
and government establishments; in the absence thereof, priority shall be
given to them.


The abovementioned privileges are available only to persons with
disability who are Filipino citizens upon submission of any of the following
as proof of his/her entitlement thereto:

() An identification card issued by the city or municipal mayor
or the barangay captain of the place where the person with
disability resides;

(Il) The passport of the person with disability concerned; or

(ill) Transportation discount fare Identification Card (ID) issued
by the National Council for the Welfare of Disabled Persons
(NCWPD).

The privileges may not be claimed if the persons with disability claims a
higher discount as may be granted by the commercial establishment
and/or under existing laws or in combination with the other discount
program/s.

The establishment may claim the discounts granted in sub-sections (a),
(b), (c), (4), (e), (® and (g) as tax deductions based on the net cost of the
goods sold or services rendered: Provided, however, 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
number of the claimed tax deduction net of value-added tax 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: (NIRC), as amended.”

Sec, 2. Implementing Rules. - The Department of Finance (DOF), Bureau of
Internal Revenue (BIR), the Department of Social Welfare and Development (DSWD)
and the National Council on Disability Affairs shall meet and promulgate the
implementing rules and regulations pertinent to this Act within thirty (30) days from the
effectivity of this Act.

Sec. 3. Repealing Clause.- All laws, rules and regulations that may be
inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

Sec. 4, Separability Clause.- If any of the provisions of this Act is declared
invalid or unconstitutional, all other provisions not affected thereby shall remain in force
and effect.

Sec. 5. Effectivity. This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved.