Republic of the Philippines fe! RECEIVED a
House of Representatives|| 2 CATEYG 25 2020

Quezon City, Metra Manila a TIME: [CUS

EIGHTEENTH CONGRESS
Second Regular Session

7482
House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
GRANTING TEN PERCENT (10%) DISCOUNT ON BASIC AND EDUCATION
SERVICES TO UNDERPRIVILEGED STUDENTS IN ALL LEVELS,
INCLUDING THOSE ENROLLED IN TECHNICAL-VOCATIONAL
(TECH-VOC) INSTITUTIONS

EXPLANATORY NOTE

The 1987 Philippine Constitution provides that the State shall
establish and maintain a system of scholarship grants, student loan
programs, and provide other incentives which shall be made available to
deserving students, especially the underprivileged.

With the growing costs of education especially made apparent by
the COVID-19 health and economic crisis, from tuition and other
miscellaneous school fees, to food and academic allowances and gadgets
to be able to adapt to multiple modes of learning, this bill seeks to ease
the financial burden of underprivileged students by granting a ten
percent (10%) discount on basic services. By providing these discounts,
we uphold social justice and actively move to equalize opportunities to
all Filipino students.

In view of the foregoing, the immediate passage of this bill is
earnestly sought.

ED Vi AS


Republic of the Philippines
House of Representatives
Quezon City, Meters Manila
EIGHTEENTH CONGRESS
‘Second Regular Session

House Bill No. _7482

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
GRANTING TEN PERCENT (10%) 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 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 2020."

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 Two Hundred Fifty Thousand Pesos (P250,000.00), 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 Two Hundred Fifty Thousand Pesos


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d)

(P250,000.00), subject to review by the NEDA every three (3) years, is
deemed an Underprivileged Student;

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;

Basic Services refer to basic necessities such as food for snacks and
meals and medicines; and

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)

b)

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On Food Establishments - A ten percent (10%) discount shall be
granted to 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 ten percent (10%) 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 ten percent (10%) 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;

On Prescribed Electronic Devices for purposes of
Online/Distance Learning - A ten percent (10%) discount shall be
granted to underprivileged students by establishments anywhere in


the country that sell electronic devices including but not limited to
computers, tablets and other electronic devices which may
hereinafter be prescribed: 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

e) On Tuition Fees, Miscellaneous, and Other School Fees - A ten
percent (10%) 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.

{) On Museums, Theaters, and Cultural Events - A ten percent (10%)
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;

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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;

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;

8)

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;

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To closely coordinate with the NEDA in determining the income
brackets of Filipino families for the purpose of identifying
underprivileged post-secondary students;

4) 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;

f} To cancel the identification cards issued for those disqualified under
Section 5 of this Act;

8) 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. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general
circulation.


Approved,