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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.B.No. 2884 
Introduced by Senator Poe 
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AN ACT GRANTING TO SENIOR CITIZENS A MINIMUM OF FIVE PERCENT (5%) 
DISCOUNT ON THE FIRST 150 KILOWATT HOURS OF ELECTRICITY AND ON THE 
FIRST 50 CUBIC METERS OF WATER CONSUMPTION, AND EXEMPTION FROM THE 
VALUE-ADDED TAX (VAT), AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 
9994, OTHERWISE KNOWN AS THE EXPANDED SENIOR CITIZENS' ACT OF 2010 
EXPLANATORY NOTE 
The 1987 Philippine Constitution, in particular Article II, is known for its strong provisions 
on social justice and fair treatment of citizens: 
• 
Section 5. The maintenance of peace and order, the protection of life, liberty, and 
property, and promotion of the general welfare are essential for the enjoyment by all the 
people of the blessings of democracy; 
• 
Section 9. The State shall promote a just and dynamic social order that will ensure the 
prosperity and independence of the nation and free the people from poverty through 
policies that provide adequate social services, promote full employment, a rising 
standard of living, and an improved quality of life for all; 
• 
Section 10. The State shall promote social justice in all phases of national development; 
and 
• 
Section 11. The State values the dignity of every human person and guarantees full 
respect for human rights. 
Since the implementation of Republic Act No. 9994, otherwise known as the Expanded 
Senior Citizens Act of 2010, several issues and complaints have been received by concerned 
government agencies regarding violations or non-compliance by certain establishments. R.A. 
9994 recognizes the great contributions of our senior citizens to nation building in that they are 
considered as "integral part of the Philippine society." 
Despite the clear intentions of R.A. 9994 in extending the privileges provided to our 
senior citizens, there is the imperative need to further amend certain provisions of this law to 
insure its proper implementation. 
For instance, the spirit of the law in granting 5% discount to a senior citizen on the 
monthly utilization of water and electricity has been hampered because Section 4(c) of RA 9994 
limits its application to those senior citizens whose consumption does not exceed 100 kilowatt 
hours (kWh) of electricity and thirty cubic meters (30m3) of water. In other words, if a senior 
citizen consumes, say 100.1 kwh or 30.1 cubic meters of water, he would no longer be entitled to 


the 5% discount. Thus, the need to amend this law to apply the 5% discount to the first 100 kwh 
or the first 30 cubic meters of water. And the senior citizens are not even entitled to VAT 
exemption despite the very small amount of discount for these utility items. 
To extend full benefits to our senior citizens, this bill seeks to further amend the 
consumption threshold for electric and water bills in that the 5% discount shall apply to the first 
150 kWh of electricity and the first fifty (50) cubic meters of water consumed in a household 
where the senior citizen resides and the electric or water meter is registered in hislher name. 
It is respectfully requested that this bill be enacted into law. 
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''t<ACEPOE 


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\. \ 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.B. No. 2884 
Introduced by Senator Poe 
'i5 
AUG -4 
Al1~3' 
RECEIVED BY:--f 
AN ACT GRANTING TO SENIOR CITIZENS A MINIMUM OF FIVE PERCENT (5%) 
DISCOUNT ON THE FIRST 150 KILOWATT HOURS OF ELECTRICITY AND ON THE 
FIRST 50 CUBIC METERS OF WATER CONSUMPTION, AND EXEMPTION FROM THE 
VALUE-ADDED TAX (VAT), AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 
9994, OTHERWISE KNOWN AS THE EXPANDED SENIOR CITIZENS' ACT OF 2010 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled. 
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1. Section 1. Section 4(c) of Republic Act No. 9994 is hereby amended to read as follows: 
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"SEC. 4. Privileges for the Senior Citizens. -
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The senior citizens shall be entitled to the following: 
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xxxxx 
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xxxxx 
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"(c) the grant of a minimum of five percent (5%) discount on the first one hundred fifty 
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(150) kilowatt hours (kWh) and on the first fifty (50) cubic meters relative to their monthly 
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utilization of water and electricity supplied by the public utilities, and exemption from the 
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value-added tax (VAT), Provided, That the_individual meters for the foregoing utilities are 
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registered in the name of the senior_citizen residing therein: and Provided, furthermore, That the 
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privilege is granted per household regardless of the number of senior citizens residing therein. 
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Section 2. Implementing Rules and Regulations.-
Within thirty (30) days from the 
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enactment of this law, the concerned agencies named under Republic Act No. 9994 shall 
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promulgate the implementing rules and regulations. 
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Section 3. Separability Clause. Should any of the prOVISIOns above be held 
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unconstitutional, then the remaining provisions shall remain effective. 
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Section 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in Official Gazette or in at least two (2) national newspapers of general circulation. 
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Approved,