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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4336

Introduced by Hon. John Marvin “Yul Servo” C. Nieto

EXPLANATORY NOTE

As a manifestation of support to this timely piece of legislation, this representation
respectfully refiles this bill, which has constantly been receiving support from both
Houses.

Article XIV, sec 1 of the 1987 Constitution states:

“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.”

Furthermore, Article XIV, section 2(3) mandates the State to 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 to the underprivileged.

This measure seeks to grant underprivileged students discounts on basic services
and necessities, educational expenses, and other school and miscellaneous fees. It
is the hope of this representation to alleviate the current condition of these
students financially thus providing them encouragement and motivation to
continue their studies.

In view of the foregoing, the approval of this measure is earnestly sought.

.

JOHN VIN" YUL SERVO” C. NIETO


95

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. ese

Introduced by Hon. John Marvin “Yul Servo” C. Nieto

AN ACT GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES To
UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE
ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS

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
Students’ Discount Act of 2019."

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
mean:

a. Underprivileged Student refers to a Filipino student enrolled in basic
education, post-secondary non-degree technical-vocational (Tech-Voc)
courses, and those enrolled in bachelor's Degree Programs at the college
level, whose parents have a gross annual income of not more than One
Hundred Fifty Thousand Pesos (P150,000.00), subject to review by the
National Economic and Development Authority (NEDA) every three years:
Provided, That a Filipino student who opts to take part-time jobs to subsidize
the student's education and whose income combined with the annual gross
income of the student's parents do not exceed One Hundred Fifty Thousand
Pesos (P150,000.00), subject to review by the NEDA every three (3) years,
is deemed an Underprivileged Student;

b. Discounts refer to an amount deducted or counted off from the cost of
goods 2 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; and

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 Students. - Underprivileged students
shall be entitled to the following:


S8ecs

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a. On Food Establishments - A five percent (5%) discount shall be granted to
underprivileged 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 (NIRC) of 1997, as
amended;

b. On Medicines - A five percent (5%) discount shall be granted to
underprivileged 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 NIRC of 1997, as
amended;

c. On Textbooks and School Supplies - A five percent (5%) discount shall be
granted to underprivileged students by establishments anywhere in the
country that sell reference books 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 NIRC of 1997, as amended; and

d. On Tuition, Miscellaneous, and Other School Fees - A five percent (5%)
discount shall be granted to underprivileged students by public and private
schools where they are enrolled in, without prejudice to their right to avail
themselves of other educational assistance given by the school and the
government, such as those provided under Republic Act No. 6728, as
amended by Republic Act No. 8545 or the "Government Assistance to
Students and Teachers in Private Education (EGASTPE)", Republic Act No.
9442 or the law amending the "Magna Carta for the Disabled", Republic Act
No. 10687 or the "Unified Student Financial Assistance System for Tertiary
Education (UniFAST)", and Republic Act No. 10931 or the "Universal Access
to Quality Tertiary Education (UAQTE) Act"; 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 NIRC
of 1997, as amended.

e. On Museums, Theaters, and Cultural Events - A five percent (5%)
discount shall be granted to underprivileged students on entrance fees to
museums, theaters, and cultural events sanctioned by the National
Commission on Culture and Arts anywhere in the country: Provided, That
private museums, theaters and producers of cultural events 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 NIRC of 1997, as
amended.

Sec. 5. Limitations. - The Department of Education (DepEd), Technical Education
and Skills Development Authority (TESDA), and Commission on Higher Education
(CHED) may identify grounds for disqualification of students in availing the
aforementioned discounts, in accordance with the implementing rules and
regulations of this Act: Provided, That these grounds will not defeat the purpose of
liberally granting such discounts to underprivileged students.


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Sec. 6. Roles of DepEd and CHED. - Qualified primary and secondary students,
and tertiary or college beneficiaries, shall be determined by DepEd and CHED,
respectively. These agencies shall have the following functions:

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

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

¢. To closely coordinate with the NEDA in determining the income brackets of
Filipino families for the purpose of identifying underprivileged primary,
secondary and college students, respectively;

d. To issue identification cards which shall be valid anywhere in the country
as proof of the eligibility of the underprivileged primary, secondary and
college students to avail themselves of the discounts;

e. To maintain and regularly update, on a quarterly basis, the list of
underprivileged primary, secondary, and college students who avail
themselves of the discounts;

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 questions regarding the eligibility of any underprivileged
primary, secondary and college students claiming the discounts through the
DepEd and CHED websites, respectively;

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 DepEd
Secretary and CHED Chairperson.

Sec. 7. Role of TESDA. - The TESDA shall be in charge of determining the
qualified post-secondary tech-voc beneficiaries under this Act through its Office of
Technical-Vocational Education and Training (TVET) Systems Development Office
(TSDO). The TESDA Director-General shall include in the regular functions of the
TSDO the following additional functions:

a. To plan, implement, and monitor 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 post-secondary 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 post-
secondary students;


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d. To issue identification cards which shall be valid anywhere in the country
as proof of the eligibility of the underprivileged post-secondary students to
avail themselves of the discounts;

e. To maintain and regularly update, on a quarterly basis, the list of
underprivileged post-secondary 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 questions regarding the eligibility of any underprivileged
post- secondary students claiming the discounts through the TESDA 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 TESDA
Director-General in the implementation of this Act.

Sec. 8. Tax Incentives. - Discounts granted by establishments to underprivileged
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
NIRC of 1997, as amended.

Sec. 9. Implementing Rules and Regulations. - The DepEd, TESDA, and
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), Department of Finance (DOF), and such other agencies
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 law takes effect.

Sec. 10. Penalties. - The first violation of any provisions of this Act shall cause
the suspension of the license to operate or the business permit of the
establishment or 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 provisions 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 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 officers
thereof shall suffer the same penalty imposed on any person found violating this
Act.

Sec. 11. Enforcement - Pursuant hereto, the DepEd, DTI, DOH, and local
government units (LGUs), in coordination with the CHED and TESDA, shall have
the mandate 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. 12. Separability Clause. - If any provision or part thereof is held invalid or
unconstitutional, the other sections or provisions thereof shall not be affected
thereby and shall remain in force and effect.

Sec. 13. 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. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,