Republic of the Philippines
HOUSE OF REPRESENTATIVES 
Quezon City
TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. 3224
Introduced by REP. EMILIO BERNARDINO L. YULO
EXPLANATORY NOTE
Article II, Section 10 of the 1987 Philippine Constitution declares that “the State
shall promote social justice in all phases of national development,” while Section 11 of
the same Article mandates that “the State values the dignity of every human person and
guarantees full respect for human rights.” These provisions serve as the foundation for
laws that protect and promote the welfare of the underprivileged, the elderly, and persons
with disabilities (PWDs).
This bill seeks to reinforce those mandates by enhancing the implementation of
Republic Acts No. 7432 and 7277, which provide financial support and social protection
to senior citizens and PWDs through mandated discounts on goods and services. It
clarifies that the 20% discount and VAT exemption, or the special discounts granted
under the law, shall be in addition to any prevailing promotional offers or discounts
provided by business establishments. Furthermore, the bill ensures that availing of these
benefits shall not require the presentation of discount booklets, removing an unnecessary
barrier for the beneficiaries.
The bill also rationalizes the tax treatment of these discounts by allowing the
business establishments to be treated as deductible expenses under Section 34 of the
National Internal Revenue Code, subject to documentation and compliance with
applicable tax regulations.
In view of the foregoing, the passage of this bill is earnestly sought.
REP. EMILIO BERNARDINO L. YULO
August 6, 2025
1:01 pm


Republic of the Philippines
HOUSE OF REPRESENTATIVES 
Quezon City
TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. 3224
Introduced by REP. EMILIO BERNARDINO L. YULO
AN ACT
ENHANCING THE DISCOUNT ON THE PURCHASE OF GOODS AND
SERVICES OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
SECTION 1. Declaration of Policy. – The State shall promote a just and dynamic
social order that shall ensure the nation’s prosperity and independence as well as free its
people from poverty. The State shall provide social justice in all phases of national
development, and value the dignity of every human person, and guarantee full respect for
human rights.
The State shall adopt an integrated approach to health development which shall
endeavor to make essential goods, health, and other social services available to all at
affordable cost. There shall be priority for the needs of the underprivileged, sick, elderly,
and persons with disabilities.
To this end, the State shall preserve the preferential treatment accorded to senior
citizens and persons with disabilities, and proportionately distribute its costs between the
government and the people.
SEC. 2. Applicability of Discounts of Senior Citizens and Persons with
Disabilities to Goods and Services on Promotional Offer. – The discount granted to
senior citizens and persons with disabilities, including the twenty percent (20%) discount


and exemption from the value-added tax (VAT) on goods and services, or the special
discount on purchase of basic necessities and prime commodities, as provided under
Section 4 of Republic Act (RA) No. 7432, otherwise known as “Senior Citizens Act,” as
amended, and Section 32 of RA No. 7277, otherwise known as “Magna Carta for Disabled
Persons with Disability,” as amended, shall be in addition to any prevailing promotional
offers or discounts extended by business establishments, if any, has been provided, but in
no way that it will require presentation of booklets in the procurement of goods.
In no case shall a promotion or discount offered by a business establishment to the
general public be considered in compliance with Section 4 of RA No. 7432, as amended,
and Section 32 of RA No. 7277, as amended.
SEC. 3. Tax Treatment of Discounts. – The twenty percent (20%) discount for
senior citizens or persons with disabilities applied on certain goods and services, the input
tax attributable to the VAT-exempt sale to senior citizens and persons with disabilities,
and the special discount on basic necessities and prime commodities, shall be treated as
part of deductible expense pursuant to Section 34 of the National Internal Revenue Code
of 1997, as amended.
The establishments may claim the discounts granted under subsections (a), (c),
and (j) of Section 4 of RA No. 7432, as amended, and subsection (a), paragraphs (1), (2),
(3), (5), (6), (7) and (8) and subsection (d) of Section 32 of RA No. 7277, as amended, as
deduction based on the net cost of goods sold or services rendered: Provided, That the
cost of the discount shall be allowed as deduction from gross income for the same taxable
year that the discount is granted: Provided, further, That the total amount of the claimed
tax deduction net of VAT,
if applicable, shall be included in their gross sales
receipts for tax purposes and shall be
subject to proper documentation and to the
provisions of the National Internal Revenue Code, as amended.
SEC. 4. Implementing Rules and Regulations. – The National Commission of
Senior Citizens and the National Council on Disability Affairs, in consultation with the
Department of the Interior and Local Government, Department of Trade and Industry,
Department of Information and Communications Technology, Department of Health,


Department of Finance, Bureau of Internal Revenue, and other relevant agencies and
stakeholders, shall promulgate the necessary rules and regulations for the effective
implementation of the provisions of this Act.
SEC. 5. Separability Clause. – If any provision of this Act is declared invalid or
unconstitutional, other provisions hereof which are not affected thereby shall remain in
full force and effect.
SEC. 6. Repealing Clause. – The pertinent provisions of the following laws are
hereby repealed, amended, or modified accordingly:
(a) Section 4 of RA No. 7432, as amended by RA No. 9994, otherwise known as the
“Expanded Senior Citizens Act of 2010,” insofar as purchase of goods and
services which are on promotional discount is concerned;
(b) Section 32 of RA No. 7277, as amended by RA No. 10754, insofar as higher
discount granted by the commercial establishment, other existing laws or in
combination with other discount programs is concerned.
(c) Section 32(j) of RA No. 9442, entitled “An Act Amending Republic Act No. 7277,
Otherwise Known as the ‘Magna Carta for Disabled Persons, and for Other
Purposes’ ”; and
(d) Section 4(l) of RA No. 9257, entitled “An Act Granting Additional Benefits and
Privileges to Senior Citizens Amending for the Purpose Republic Act No. 7432,
Otherwise Known as ‘An Act to Maximize the Contribution of Senior Citizens to
Nation Building, Grant Benefits and Special Privileges for the Other Purposes’ ”.
All other laws, rules and regulations, and other issuances or parts thereof, which
are inconsistent with the provisions of this Act, are hereby repealed, amended, or
modified accordingly.
SEC. 7. Effectivity. – This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved,