EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
Offi,. i3/ l»''»c T'Marr
’19 
H L - 2  
AlO ^ 0
S E N A T
S. B. No.
Introduced by Senator SONNY ANGARA
AN ACT
GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES TO 
UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE 
ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS
EXPLANATORY NOTE
The 1987 Constitution provides that the State shall establish and maintain a 
system of scholarship grants, student loan programs, and provide other incentives 
which 
shall 
be 
made 
available 
to 
deserving 
students, 
especially 
to 
the 
underprivileged.
Even with the system of scholarship grants and student loan programs 
provided by the government, not all deserving and underprivileged students get to 
finish their education because they lack the financial capacity to spend for their basic 
needs and other expenses related to their schooling.
To ease the financial burden of underprivileged students and help them cope 
with the high cost of education as well as daily school expenses, this measure 
proposes to grant discounts on basic services, such as food and medicine. Moreover, 
it also seeks to give them discounts on educational expenses, such as tuition, 
miscellaneous, and other school fees, including books and school supplies.
While the passage of Republic Act No. 10931 or the "Universal Access to 
Quality Tertiary Education Act" (also more popularly known as the "Free Tuition 
Law") eases the burden of Filipinos, the Commission on Higher Education said that 
tuition only comprised 30-40 percent of a family's out-of-pocket education expenses.
Considering that we now have a law giving discounts to senior citizens, it is 
high time that we consider the plight of our underprivileged students who are our 
nation's future.


In view of the foregoing reasons, immediate approval of this measure is 
earnestly sought.
SONNY ANGARA


EIGHTEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
)
'19
S E N A T E
S. B. No. J.Z2
RECt ■
■19 
J U L -2  
AlO ^ 0
Introduced by Senator SONNY ANGARA
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 o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "Underprivileged
2 
Students' Discount Act o f 2019."
3 
Sec. 2. Declaration o f Policy. -  It is the policy of the State to prioritize quality
4 
education and take appropriate steps to make such education accessible to all.
5 
Sec. 3. Definition o f Terms. 
-  As used in this Act, the following terms shall
6 
mean:
7 
(a) Underprivileged Student refers to a Filipino student enrolled in basic
8 
education, post-secondary non-degree technical-vocational (Tech-Voc) courses, and
9 
those enrolled in bachelor's Degree Programs at the college level, whose parents
10 
have a gross annual income of not more than One Hundred Fifty Thousand Pesos
11 
(P150,000.00), subject to review by the National Economic and Development
12 
Authority (NEDA) every three years: Provided, That a Filipino student who opts to
13 
take part-time jobs to subsidize the student's education and whose income
14 
combined with the annual gross income of the student's parents do not exceed One
15 
Hundred Fifty Thousand Pesos (P150,000.00), subject to review by the NEDA every
16 
three (3) years, is deemed an Underprivileged Student;


1 
(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;
3 
(c) Basic Services refer to basic necessities such as food for snacks and meals
4 
and medicines; and
5 
(d) Education Services refer to education-related expenditures such as tuition,
6 
miscellaneous and other school fees, books, and school supplies.
7 
Sec. 4. Discounts for Underprivileged Students. -  Underprivileged students shall
8 
be entitled to the following:
9 
(a) On Food Establishments - A five percent (5%) discount shall be granted to
10 
underprivileged students by food establishments such as food chains,
11 
canteens and restaurants anywhere in the country: Provided, That private
12 
food establishments may claim the cost as allowable tax deduction from the
13 
gross income in the computation of the income tax in accordance with the
14 
provisions of the National Internal Revenue Code (NIRC) of 1997, as
15 
amended;
16 
(b) On Medicines - A five percent (5%) discount shall be granted to
17 
underprivileged students by pharmacies or drug stores anywhere in the
18 
country: Provided, That these pharmacies or drug stores may claim the cost
19 
as allowable tax deduction from the gross income in the computation of the
20 
income tax in accordance with the provisions of the NIRC of 1997, as
21 
amended;
22 
(c) On Textbooks and School Supplies - A five percent (5%) discount shall be
23 
granted to underprivileged students by establishments anywhere in the
24 
country that sell reference books and school supplies: Provided, That these
25 
establishments may claim the cost as allowable tax deduction from the gross
26 
income in the computation of the income tax in accordance with the
27 
provisions of the NIRC of 1997, as amended; and
28 
(d) On Tuition Fees, Miscellaneous, and Other School Fees - A five percent (5%)
29 
discount shall be granted to underprivileged students by public and private
30 
schools where they are enrolled in, without prejudice to their right to avail
31 
themselves of other educational assistance given by the school and the
32 
government, such as those provided under Republic Act No. 6728, as


1 
amended by Republic Act No. 8545 or the "Government Assistance to
2 
Students and Teachers in Private Education (EGASTPE)", Republic Act No.
3 
9442 or the law amending the "Magna Carta for the Disabled", Republic Act
4 
No. 10687 or the "Unified Student Financial Assistance System for Tertiary
5 
Education (UniFAST)", and Republic Act No. 10931 or the "Universal Access
6 
to Quality Tertiary Education (UAQTE) Act"; Provided, That the schools may
7 
claim the cost as allowable tax deduction from the gross income in the
8 
computation of the income tax in accordance with the provisions of the NIRC
9 
of 1997, as amended.
10 
(e) On Museums, Theaters, and Cultural Events - A five percent (5%) discount
11 
shall be granted to underprivileged students on entrance fees to museums,
12 
theaters, and cultural events sanctioned by the National Commission on
13 
Culture and Arts anywhere in the country: Provided, That private museums,
14 
theaters and producers of cultural events may claim the cost as allowable tax
15 
deduction from the gross income in the computation of the income tax in
16 
accordance with the provisions of the NIRC of 1997, as amended.
17 
Sec. 5. Limitations. -  The Department of Education (DepEd), Technical Education
18 
and Skills Development Authority (TESDA), and Commission on Fligher Education
19 
(CHED) may identify grounds for disqualification of students in availing the
20 
aforementioned 
discounts, 
in 
accordance with the implementing 
rules and
21 
regulations of this Act: Provided, That these grounds will not defeat the purpose of
22 
liberally granting such discounts to underprivileged students.
23 
Sec. 6. Roles o f DepEd and CHED. -  Qualified primary and secondary students,
24 
and tertiary or college beneficiaries, shall be determined by DepEd and CHED,
25 
respectively. These agencies shall have the following functions:
26 
(a) To plan, implement, and monitor yearly work programs, evaluate and submit
27 
annual reports in pursuance to the objectives of this Act;
28 
(b)To screen applicants, receive documentary proof, and identify who are the
29 
eligible underprivileged primary, secondary and college students based on the
30 
provisions of this Act;


1 
(c) To closely coordinate with the NEDA in determining the income brackets of
2 
Filipino families for the purpose of identifying underprivileged primary, secondary
3 
and college students, respectively;
4 
(d) To issue identification cards which shall be valid anywhere in the country as
5 
proof of the eligibility of the underprivileged primary, secondary and college
6 
students to avail themselves of the discounts;
7 
(e) To maintain and regularly update, on a quarterly basis, the list of underprivileged
8 
primary, secondary, and college students who avail themselves of the discounts;
9 
(f) To cancel the identification cards issued for those disqualified under Section 5 of
10 
this Act;
11 
(g) To provide information to the affected establishments under Section 4 of this Act
12 
for any questions regarding the eligibility of any underprivileged primary,
13 
secondary and college students claiming the discounts through the DepEd and
14 
CHED websites, respectively;
15 
(h) To monitor the extent of implementation of this Act and to coordinate with the
16 
concerned agencies regarding the imposition of penalties on violators of this Act;
17 
and
18 
(i) To perform such other functions as may be determined by the DepEd Secretary
19 
and CHED Chairperson.
20 
Sec. 7. Role o f TESDA. -  The TESDA shall be in charge of determining the
21 
qualified post-secondary tech-voc beneficiaries under this Act through its Office of
22 
Technical-Vocational Education and Training (TVET) Systems Development Office
23 
(TSDO). The TESDA Director-General shall include in the regular functions of the
24 
TSDO the following additional functions:
25 
(a) To plan, implement, and monitor work programs, evaluate and submit annual
26 
reports in pursuance of the objectives of this Act;
27 
(b)To screen applicants, receive documentary proof, and identify who are the
28 
eligible underprivileged post-secondary students 
based on the provisions of
29 
this Act;
30 
(c) To closely coordinate with the NEDA in determining the income brackets of
31 
Filipino families for the purpose of identifying underprivileged post-secondary
32 
students;


1 
(d)To issue identification cards which shall be valid anywhere in the country as
2 
proof of the eligibility of the underprivileged post-secondary students to avail
3 
themselves of the discounts;
4 
(e)To maintain and regularly update, on a quarterly basis, the list of
5 
underprivileged 
post-secondary students who avail themselves of the
6 
discounts and to review, evaluate and assess their academic standing;
7 
(f) To cancel the identification cards issued for those disqualified under Section 5
8 
of this Act;
9 
(g)To provide information to the affected establishments under Section 4 of this
10 
Act for any questions regarding the eligibility of any underprivileged post-
11 
secondary students claiming the discounts through the TESDA website;
12 
(h)To monitor the extent of implementation of this Act and to coordinate with
13 
the concerned agencies regarding the imposition of penalties on violators of
14 
this Act; and
15 
(i) To perform such other functions as may be determined by the TESDA
16 
Director-General in the implementation of this Act.
17 
Sec. 8. Tax Incentives. -  Discounts granted by establishments to underprivileged
18 
students under this Act shall be treated as allowable deduction from the gross
19 
income in the computation of the income tax, in accordance with the provisions of
20 
NIRC of 1997, as amended.
21 
Sec. 9. Implementing Rules and Regulations. -  The DepEd, TESDA, and CHED, in
22 
coordination with the NEDA, the Department of Social Welfare and Development
23 
(DSWD), the Department of Health (DOH), the Department of Trade and Industry
24 
(DTI), Department of Finance (DOF), and such other agencies concerned with the
25 
establishments which may be affected by this Act, shall issue the implementing rules
26 
and regulations to carry out the objectives of this Act within thirty (30) days after
27 
this law takes effect.
28 
Sec. 10. Penalties. -  The first violation of any provisions of this Act shall cause
29 
the suspension of the license to operate or the business permit of the establishment
30 
or person concerned for not less than one (1) week but not more than four (4)
31 
weeks and a fine of not less than Twenty Thousand Pesos (P20,000.00) but not
32 
more than Fifty Thousand Pesos (P50,000.00).


1 
The second violation of any provisions of this Act shall cause the suspension
2 
of the license to operate or the business permit of the establishment or the person
3 
concerned for not less than four (4) weeks and a fine of not less than Fifty
4 
Thousand Pesos (P50/000.00), but not exceeding Two Hundred Fifty Thousand
5 
Pesos (P250,000.00): Provided, however, That the procedure of notice and hearing
6 
shall have been complied with prior to the imposition of the said penalties.
7 
If the offender is a corporation, organization or any similar entity, the officers
8 
thereof shall suffer the same penalty imposed on any person found violating this Act.
9 
Sec. 11. Enforcement -  Pursuant hereto, the DepEd, DTI, DOH, and local
10 
government units (LGUs), in coordination with the CHED and TESDA, shall have the
11 
mandate to implement the provisions of this Act. After filing of an appropriate
12 
complaint, and after due notice and hearing, the proper authorities may also cause
13 
the cancellation or revocation of the business permit, permit to operate, franchise
14 
and other similar privileges granted to any business entity that fails to abide by the
15 
provisions of this Act.
16 
Sec. 12. Separability Clause. -  If any provision or part thereof is held invalid or
17 
unconstitutional, the other sections or provisions thereof shall not be affected
18 
thereby and shall remain in force and effect.
19 
Sec. 13. Repealing Clause. -  All laws, executive orders, decrees, instructions,
20 
rules and regulations contrary to or inconsistent with any provision of this Act are
21 
hereby amended, repealed or modified accordingly.
22 
Sec. 14. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its
23 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,