FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
) 
Introduced by Senator Richard J. Gordon 
EXPLANATORYNOTE 
Medicines, including essential, life-saving ones, are priced way too steep beyond 
the reach of ordinary Filipinos. Since these are indispensable and relatively demand- 
inelastic commodities - where fluctuations in price have little or no effect upon market 
demand - certain consumers are placed at a greater economic disadvantage and feel the 
burden of the increasing medicine prices more than others. As such, there is a need to 
rectify the situation and balance the inequity, in line with the constitutional policy giving the 
highest priority to the enactment of measures that reduce social inequalities, promote the 
availability of health services to people at an affordable cost, and prioritize the needs of the 
underprivileged and the elderly. 
In view of this policy, this bill seeks to provide a sensible solution to the rising cost of 
medicines, making it more affordable and accessible to ordinary Filipinos, by granting a 
20% discount, exempt from the twelve percent (12%) value-added tax imposed by Republic 
Act No. 9337, on the sale of medicine to government employees, senior citizens, and 
indigents. 
In view thereof, the passage of this bill 
Senator 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
Introduced by Senator Richard J. Gordon 
AN ACT 
GRANTING GOVERNMENT EMPLOYEES, SENIOR CITIZENS AND INDIGENTS A 
TWENTY PERCENT (20%) DISCOUNT ON THE SALE OF MEDICINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Policy. - It is the policy of the State to adopt measures that reduce 
social inequality, promote the availability of health services to people at an affordable cost, 
and prioritize the needs of the underprivileged and elderly, 
Sec. 2. Discount on Medicines. - A twenty percent (20%) discount on the sale of 
medicines in all establishments, except Botika ng Bayan outlets, shall be granted to the 
following: 
(a) government employees; 
(b) 
senior citizens; and 
(c) 
indigents, as certified by the barangay where such indigent resides. 
Sec. 3. Exemption from Value-Added Tax. - The sale of medicines under section 
2 of this Act shall be exempt from the Expanded Value Added Tax as provided under the 
National Internal Revenue Code, as amended. 
Sec. 4. Proof of Entitlement. - In availing of the discount mentioned in section 2 of 
this Act, the following documents shall serve as proof of entitlement: 
(a) 
For government employees, a valid government ID or their GSlS card; 
(b) 
For senior citizens, any of the documents enumerated in Republic Act No. 
9257, otherwise known as the Expanded Senior Citizens Act of 2003; 
(c) 
For indigents, a barangay certificate of indigency. 
Sec. 5. lrnplementing Rules and Regulations.- The Department of Health, within 
sixty (60) days from the approval of this Act, shall promulgate the implementing rules and 
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regulations for the effective implementation of the provisions of this Act, in consultation and 
coordination with other concerned agencies and offices. 
Sec. 6. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
Sec. 7. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain 
in force and effect. 
Sec. 8. Effecfivify. - This Act shall take effect after fifteen (15) days following the 
completion of its publication either in the Official Gazette or in a newspaper of general 
circulation in the Philippines. 
Approved,