Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL Nor E209

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

EXPLANATORY NOTE

According to the Philippine Statistics Authority, poverty incidence among
Filipino families for the first semester of 2021 was estimated at 18 percent which is
equivalent to around 4.74 million poor families. These families live below the poverty
threshold! or the minimum income required for a family to meet the basic food and
non-food needs.” For these poor families, eating three times a day is already a struggle
— making sending their children to school a luxury when it is actually a right.

‘The Universal Access to Tertiary Education Act helped equalize access to tertiary
education by institutionalizing free tuition in state-owned colleges and universities.

But tuition fees are not the only expenses that students and their parents must
shoulder. They will also need to pay for food. medicine, and books — the costs of which
the poorest Filipino families may struggle to meet. Hence, this measure, which secks to
help the poorest Filipinos go to school.

This proposed measure hopes to achieve its goal through two means:
FIRST. By providing underprivileged students a discount of 5% when
they buy books, medicine, and food, which discounts may be

claimed by establishments as tax deductions; and

SECOND. By providing means by which government agencies can
implement the provisions of this proposed measure.

" P12,0R2 on average per month for a Filipino family with five (5) members
2 https:/psa.gov.ph/poverty-press-releases/nid/ 165535,


“Education is the key to ending poverty” because it is through education that the
poorest Filipinos could unlock for themselves a better future.

In view of the foregoing, the passage of this bill in the 19" Congress is earnestly

sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

“T209

HOUSE BILL Ni

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

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 2022."

SECTION 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.

SECTION 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 (P 150,000.00), 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 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.

SECTION 4. Discounts for Underprivileged Students. — Underprivileged students
shall be entitled to the following:

(a) On Food Establishments - A five percent (5%) discount shall be granted to

(b)

(G

(d)

)

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;

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;

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

On Tuition Fees, 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.

(c) 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.

SECTION 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.

SECTION 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;

(c) 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.

SECTION 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;

(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;

(8) 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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,