Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2520 
Introduced by:  REP. SALVADOR A. PLEYTO, SR. 
EXPLANATORY NOTE 
The State, as enshrined in its Constitution, is mandated to adopt an 
integrated and comprehensive approach to health development which shall 
endeavor to make essential goods, health and other social services available 
to all people at affordable cost. Furthermore, it is the policy of the State to 
provide for the welfare of the elderly and persons with disability (PWD), 
recognizing their invaluable contributions to society and their unique needs. 
Existing laws, Republic Act No. 9994 (Expanded Senior Citizens Act of 
2010) and Republic Act No. 10754 (An Act Expanding the Benefits and 
Privileges of Persons with Disability), grant a twenty percent (20%) discount 
and exemption from the value-added tax (VAT) on certain goods and services 
for senior citizens and persons with disability, respectively. While these laws 
have provided significant relief, the escalating cost of living, coupled with 
various promotional offers and establishment-specific discounts, often lead to 
confusion and, at times, the unintended erosion of the intended benefits for 
these vulnerable sectors. 
There have been instances where senior citizens and PWDs are given 
only one discount, either the statutory 20% discount or the establishment's 
promotional discount, whichever is higher. This practice, while seemingly 
beneficial in some cases, undermines the spirit and intent of the law, which 
is to provide additional financial assistance to these groups. The statutory 
discount should be a guaranteed benefit, separate from and in addition to any 
other discounts offered to the general public or specific promotions by 
establishments. 
This proposed measure seeks to clarify and explicitly state that the 
statutory twenty percent (20%) discount and VAT exemption granted to senior 
citizens and persons with disability shall be applied in addition to any 
promotional discounts, establishment discounts, or other special offers 
extended to the general public or specific groups. This ensures that the 
July 29, 2025
4:37 pm


benefits intended for senior citizens and PWDs are truly enhanced and not 
merely substituted by other commercial offers. 
By clearly defining the stacking of discounts, this bill aims to empower 
senior citizens and PWDs to fully avail themselves of all applicable price 
reductions, thereby further alleviating their financial burdens and improving 
their quality of life. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
SALVADOR A. PLEYTO, SR.       


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2520 
Introduced by:  REP. SALVADOR A. PLEYTO, SR. 
___________________________________________________________________________ 
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 the 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 
7277, otherwise known as “Magna Carta for 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.6In 
no case shall a promotion or discount offered by a business establishment to 
the general public be considered incompliance with Section 4 of RA 7432, as 
amended, and Section 32 of RA7277, 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 7432, as amended, and 
subsection (a), paragraphs (1), (2), (3), (5), (6), (7) and (8) and subsection (d) 
of Section 32 of RA 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, 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 7432, as amended by RA 9994, otherwise known as 
the  “Expanded 1Senior Citizens Act of 2010,” insofar as purchase of 
goods and services which are on 2promotional discount is concerned; 
and   


(b) Section 32 of RA 7277, as amended by RA10754, insofar as higher 
discount granted by the commercial establishment, other existing 
laws or in combination with other discount programs is concerned;  
 
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,