TV/ENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1063
Senate
25 AUG-6 P4:24
RliCEIVfD BV
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
GRANTING FIVE PERCENT (5%) DISCOUNT ON BASIC AND EDUCATION 
SERVICES TO UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING 
THOSE ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) 
INSTITUTIONS
EXPLANATORY NOTE
Education is still one of the most effective ways to improve the lives of Filipino 
families and end the nation's poverty cycle. Section 1, Article XIV of the 1987 
Constitution 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 under­
privileged."
Many students from low-income families still struggle to meet the daily 
demands of schooling, even in the face of existing laws and programs that provide 
educational assistance. The cost of tuition, school supplies, food, sometimes medicine, 
and even devices needed for learning places an enormous burden on families with 
limited resources. This leads to students dropping out, underperforming, and even 
juggling multiple responsibilities just to survive one academic school year. There is a 
divide on what existing laws provide and what students on the ground actually need 
to thrive in their education.


This proposed measure seeks to ease the burden on students by providing a 
five percent (5%) mandatory discount on essential services such as food, medicine, 
tuition, books, supplies, and electronic devices needed for learning. These will be 
extended to all qualified underprivileged students across all levels of education, 
including those in technical-vocational institutions.
This measure is not just about discounts but is about recognizing education as 
a right and ensuring that most costs associated with it do not become a barrier for the 
poor and deserving.
A similar measure was previously filed by Senator Juan Edgardo "Sonny" 
Angara during the Nineteenth Congress.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
INGGpY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1063
gs»euat^
<©ffirp of tI)L' ^?iretrr2’
25 AUG-6 P4 ‘24
Rl:CEIvtD liU
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
GRANTING FIVE PERCENT (5%) DISCOUNT 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 the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "'Underprivileged
2 
Students'Discount Act.
3 
Sec. 2. Declaration of State Policy. - It is the policy of the State to prioritize
4 
quality education and take appropriate steps to make such education accessible to all.
5 
Sec. 3. Definition of Terms. - As used in this Act, the following terms shall
6 
mean:
7 
a) Basic Services refer to basic necessities such as food for snacks and meals
8 
and medicines;
9 
b) Discounts refer to an amount deducted or counted off from the cost of
10 
goods under basic services and from fees 
to be collected on 
education
11 
services;
12 
c) Education Services refer to education-related expenditures such as tuition,
13 
miscellaneous and other school fees, books, and school supplies; and
14 
d) Underprivileged Student refers to a Filipino student enrolled in basic
15 
education, post-secondary non-degree technical-vocational (Tech-Voc)


1 
courses, and those enrolled in bachelor's Degree Programs at the college
2 
level, whose parents have a gross annual income of not more than Two
3 
hundred fifty thousand pesos (P250,000.00), subject to review by the
4 
National Economic and Development Authority (NEDA) every three years:
5 
Provided, That a Filipino student who opts to take part-time jobs to subsidize
6 
the student's education and whose income combined with the annual gross
7 
income of the student's parents do not exceed Two hundred fifty thousand
8 
pesos (P250,000.00), subject to review by the NEDA every three (3) years,
9 
is deemed an Underprivileged Student.
10 
Sec. 4. Discounts for Underprivileged Students. - Underprivileged students shall
11 
be entitled to the following:
12 
a) On Food Establishments - A five percent (5%) discount shall be granted to
13 
underprivileged students by food establishments such as food chains,
14 
canteens and restaurants anywhere in the country: Provided, That private
15 
food establishments may claim the cost as allowable tax deduction from the
16 
gross income in the computation of the income tax in accordance with the
17 
provisions of the National Internal Revenue Code (NIRC) of 1997, as
18 
amended;
19 
b) On Medicines - A five percent (5%) discount shall be granted to
20 
underprivileged students by pharmacies or drug stores anywhere in the
21 
country: Provided, That these pharmacies or drug stores may claim the cost
22 
as allowable tax deduction from the gross income in the computation of the
23 
income tax in accordance with the provisions of the NIRC of 1997, as
24 
amended;
25 
c) On Textbooks and School Supplies - A five percent (5%) discount shall be
26 
granted to underprivileged students by establishments anywhere in the
27 
country that sell reference books and school supplies: Provided, That these
28 
establishments may claim the cost as allowable tax deduction from the gross
29 
income in the computation of the income tax in accordance with the
30 
provisions of the NIRC of 1997, as amended;
31 
d) On Prescribed Electronic Devices for purposes of Online/Distance Learning
32 
- A five percent (5%) discount shall be granted to underprivileged students


1 
by establishments anywhere in the country that sell electronic devices
2 
including but not limited to computers, tablets and other electronic devices
3 
which may hereinafter be prescribed: Provided, That these establishments
4 
may claim the cost as allowable tax deduction from the gross income in the
5 
computation of the income tax in accordance with the provisions of the NIRC
6 
of 1997, as amended; and
7 
e) On Tuition Fees, Miscellaneous, and Other School Fees - A five percent (5%)
8 
discount shall be granted to underprivileged students by public and private
.9 
schools where they are enrolled in, without prejudice to their right to avail
10 
themselves of other educational assistance given by the school and the
11 
government, such as those provided under Republic Act No. 6728, as
12 
amended by Republic Act No. 8545 or the "Government Assistance to
13 
Students and Teachers in Private Education (EGASTPE)", Republic Act No.
14 
9442 or the law amending the "Magna Carta for the Disabled", Republic Act
15 
No. 10687 or the "Unified Student Financial Assistance System for Tertiary
16 
Education (UniFAST)", and Republic Act No. 10931 or the "Universal Access
17 
to Quality Tertiary Education (UAQTE) Act": Provided, That the schools may
18 
claim the cost as allowable tax deduction from the gross income in the
19 
computation of the income tax in accordance with the provisions of the NIRC
20 
of 1997, as amended.
21 
f) On Museums, Theaters, and Cultural Events - A five percent (5%) discount
22 
shall be granted to underprivileged students on entrance fees to museums,
23 
theaters, and cultural events sanctioned by the National Commission on
24 
Culture and Arts anywhere in the country: Provided, That private museums,
25 
theaters and producers of cultural events may claim the cost as allowable
26 
tax deduction from the gross income in the computation of the income tax
27 
in accordance with the provisions of the NIRC of 1997, as amended.
28 
Sec. 5. Limitations. - The Department of Education (DepEd), Technical
29 
Education and Skills Development Authority (TESDA), and Commission on Higher
30 
Education (CHED) may identify grounds for disqualification of students in availing the
31 
aforementioned discounts, in accordance with the implementing rules and regulations


1 
of this Act: Provided, That these grounds will not defeat the purpose of liberally
2 
granting such discounts to underprivileged students.
3 
Sec. 6. Roles of DepEd and CHED. - Qualified primary and secondary students,
4 
and tertiary or college beneficiaries, shail be determined by DepEd and CHED,
5 
respectively. These agencies shall have the following functions:
6 
a) To plan, implement, and monitor yearly work programs, evaluate and
7 
submit annual reports in pursuance to the objectives of this Act;
8 
b) To screen applicants, receive documentary proof, and identify who are the
9 
eligible underprivileged primary, secondary and college students based on
10 
the provisions of this Act;
11 
c) To closely coordinate with the NEDA in determining the income brackets of
12 
Filipino families for the purpose of identifying underprivileged primary,
13 
secondary and college students, respectively;
14 
d) To issue identification cards which shall be valid anywhere in the country as
15 
proof of the eligibility of the underprivileged primary, secondary and college
16 
students to avail themselves of the discounts;
17 
e) To maintain and regularly update, on a quarterly basis, the list of
18 
underprivileged primary, secondary, and college students who avail
19 
themselves of the discounts;
20 
f) To cancel the identification cards issued for those disqualified under Section
21 
5 of this Act;
22 
g) To provide information to the affected establishments under Section 4 of
23 
this Act for any questions regarding the eligibility of any underprivileged
24 
primary, secondary and college students claiming the discounts through the
25 
DepEd and CHED websites, respectively;
26 
h) To monitor the extent of implementation of this Act and to coordinate with
27 
the concerned agencies regarding the imposition of penalties on violators of
28 
this Act; and
29 
i) To perform such other functions as may be determined by the DepEd
30 
Secretary and CHED Chairperson.
31


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


1 
the gross income in the computation of the income tax, in accordance with the
2 
provisions of NIRC of 1997, as amended.
3 
Sec. 9. Penalties. - The first violation of any provisions of this Act shall cause
4 
the suspension of the license to operate or the business permit of the establishment
5 
or person concerned for not less than one (1) week but not more than four (4) weeks
6 
and a fine of not less than Twenty thousand pesos (P20,000.00) but not more than
7 
Fifty thousand pesos (P50,000.00).
8 
The second violation of any provisions of this Act shall cause the suspension of
9 
the license to operate or the business permit of the establishment or the person
10 
concerned for not less than four (4) weeks and a fine of not less than Fifty Thousand
11 
Pesos (P50,000.00), but not exceeding Two Flundred Fifty Thousand Pesos
12 
(P250,000.00): Provided, however. That the procedure of notice and hearing shall
13 
have been complied with prior to the imposition of the said penalties.
14 
If the offender is a corporation, organization or any similar entity, the officers
15 
thereof shall suffer the same penalty imposed on any person found violating this Act.
16 
Sec. 10. Enforcement - Pursuant hereto, the DepEd, DTI, DOFI, and local
17 
government units (LCDs), in coordination with the CFIED and TESDA, shall have the
18 
mandate to implement the provisions of this Act. After filing of an appropriate
19 
complaint, and after due notice and hearing, the proper authorities may also cause
20 
the cancellation or revocation of the business permit, permit to operate, franchise and
21 
other similar privileges granted to any business entity that fails to abide by the
22 
provisions of this Act.
23 
Sec. 11. Implementing Clause. - The DepEd, TESDA, and CHED, in coordination
24 
with the NEDA, the Department of Social Welfare and Development (DSWD), the
25 
Department of 
Flealth (DOFI), the Department of Trade and Industry (DTI),
26 
Department of 
Finance (DOF), and such other agencies concerned with the
27 
establishments which may be affected by this Act, shali issue the implementing rules
28 
and regulations to carry out the objectives of this Act within thirty (30) days after this
29 
law takes effect.
30 
Sec. 12. Separability Clause. - If any provision or part thereof is held invalid or
31 
unconstitutional, the other sections or provisions thereof shall not be affected thereby
32 
and shall remain in force and effect.


1 
Sec. 13. Repealing Clause. - All laws, executive orders, decrees, instructions,
2 
rules and regulations contrary to or inconsistent with any provision of this Act are
3 
hereby amended, repealed or modified accordingly.
4 
Sec. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
5 
publication in the Official Gazette or in any newspaper of the general circulation.
Approved,