Republic of the Philippine 
SENATE OF THE PHILIPPINES 
Pasay City 
SIXTEENTH CONGRESS 
First Regular Session 
Senate Bill No. 
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INTRODUCED BY SENATOR JUAN EDGARDO "so;mY" M. ANGARA 
EXPLANATORY NOTE 
The 1987 Constitution provides that the State shall establish and maintain a 
system of scholarship grants, student loan programs, anc provide other incentive~ 
which shall be made available to deserving students, espechlly to the underprivileged, 
enrolled in both public and private higher education institutiol,s and technical-vocational 
institutes. 
However, not all deserving and underprivileged stud(·nts who were able to get 
scholarships, grants or loans get to finish their education bec, use they lack the financial 
capacity to spend for their basic needs or other expenses rel~:ed to their schooling. 
To ease the financial burden of underprivileged stu(·~nts and help them cope 
with the high cost of education and daily school expenses .. :his measure proposes to 
grant discounts on basic services, such as food, m~dicine an' transportation. Moreover, 
it also seeks to give them discounts on educational e, ,Jenses, such as tuition, 
miscellaneous and other school fees, including books and set 001 supplies. 
Considering that we now have a law giving discounts >J senior citizens, it is high 
time that we consider the plight of our underprivileged stue ,mts who are our nation's 
future. 
In view of the foregoing reasons, immediate approval (,., this measure is earnestly 
sought. 


SIXTEENTH CONGRESS OF THE PHILIPPINES ) 
REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator JUAN EDGARDO "SONNY" ANGARA 
AN ACT GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES 
TO UNDERPRIVILEGED STUDENTS IN THE POST-SECONDARY AND 
TERTIARY LEVELS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Underprivileged Post-
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Secondary and Tertiary Students' Discount Act of 201,3," 
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SEC. 2. Declaration of Policy. It is the policy of the State to prioritize quality education 
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and take appropriate steps to make'such education accessible to aiL 
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SEC. 3. Definition of Terms. As used in this Act, the following terms shall mean: 
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(a) Underprivileged Post-Secondary and Tertiary Students refer to Filipino students 
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enrolled in post-secondary non-degree technical-vocational (Tech-Voc) courses 
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and those enrolled in Bachelor's Degree Programs at the college level, 
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respectively, whose parents have a gross annual in,;ome of not more than One 
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Hundred Thousand Pesos (Pi 00,000.00), subject to review by the National 
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Economic and Development Authority (NEDA) every three years, These also 
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include Filipino students who opt to take part-time jobs to subsidize their education 
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and whose income combined with the annual gross income of their parents do not 
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exceed One Hundred Thousand Pesos (Pi 00,000,00), subject to review by the! 
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NEDA every three (3) years; 
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(b) Discounts refer to an amount deducted or counted off from the cost of goods under 
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basic services and from fees to be collected on education services; 
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(c) Basic Services refer to basic necessities such as for,,j for snacks and meals and 
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medicines; and 
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(d) Education Services refer to education-related 
ex;;enditu~es such as tuition, 
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miscellaneous and other school fees, books and school supplies, 
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SEC. 4. Discounts for 
Underprivileged 
Post-Secondary and Tertiary 
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Students. Underprivileged post-secondary and tertiary stUdents shall be entitled to the 
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following: 
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(a) On Food Establishments, - A five percent (5%) discount shall be granted to 
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underprivileged post-secondary and tertiary students by food establishments such 
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as food chains, canteens and restaurants anywhere in the country: Provided, That 
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private food establishments may claim the cost as allO'Nable t<lX deduction from the 
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gross income in the computation of the income Fax in accordance with the 
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provisions of the National Internal Revenue Code of 1')97, as amended; 
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(b) On Medicines, - A five percent (5%) discount shall ne granted to underprivileged 
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post-secondary and tertiary stUdents by pharmacie£ or drug stores anywhere in 
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the country: Provided, That these pharmacies or drug slores may claim the cost as 
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allowable tax deduction from the gross income in th', complltation of the income 


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tax in accordance with the provisions of the Natiomi, Internal Revenue Code of 
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1997, as amended; 
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(e) On Textbooks and School Supplies. -
A five percf,nt (5%) discount shall be 
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granted to underprivileged post-secondary and tertiar~. students by establishments 
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anywhere in the country that sell reference bor..ks for technical-vocational 
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education and training and college and school su['plies: Provided, That these 
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establishments may claim the cost as allowable ta* dedu~tion from the gross 
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income in the computation of the income tax in accordance with the provisions of 
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the National Internal Revenue Code of 1997, as amended; and 
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(d) On Tuition Fees, Miscellaneous and Other School I"ees. - A five percent (5%) 
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discount shall be granted to underprivileged post-sec'Jndary and tertiary students, 
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by public and private schools accredited by the Tei;hnical Education and Skills 
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Development Authority (TESDA) and the 
Commission on Higher Education, 
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respectively, where they are enrolled in, without prejudice to their right to avail 
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themselves of other educational assistance given by the schoo! and the 
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government, such as the "Study Now, Pay Later Plim" un<;ler Republic Act No. 
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6728, "Discounts to Disabled Students" under R.A. No. 9442 or the law amending 
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the "Magna Carta for the Disabled": Provided, That th":> schools may claim the cost 
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as allowable tax deduction from the gross income in the computation of the income 
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tax in accordance with the provisions of the National Internal Revenue Code of 
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1997, as amended. 
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SEC. 5. Limitations. The discounts granted to an underprivileged post-secondary or 
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tertiary student under this Act may not be availed under the following circumstances -
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1) If the tertiary student: 
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(a) fails for one (1) semester in the majority of the aC,ldemic subjects enrolled in 
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during the course of study, unless such failure is due 10 some valid cause beyond 
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the student's control; 
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(b) fails to finish the course within two (2) years from the time the stUdent should have 
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graduated; 
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(c) stops schooling for one (1) semester; and 
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(d) is convicted of any crime. 
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2) If the post-secondary student: 
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(a) fails in the certificate/diploma course enrolled in, unlet';' such failure is due to some 
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valid cause beyond the student's control; 
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(b) fails to finish the short-term technical-vocational cours', enrolled in; 
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(c) stops schooling; and 
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(d) is convicted of any crime. 
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SEC. 6. Role of the CHED. The CHED shall determine ti,e qualified tertiary Of college 
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beneficiaries under this Act through its Office of Student Services (OSS). The CHED 
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Chairperson shall include in the regular functions of the iJSS the following additional 
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functions: 
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(a) To plan, implement and monitor yearly work protirams, evaluate and submit 
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annual reports in pursuance of the objectives of this Ar.t; 
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(b) To screen applicants, receive documentary proof, an~i identify who are the eligible 
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underprivileged tertiary students based on the provisit,)ns of this Act; 
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(c) To closely coordinate with the NEDA in determining W'3 income brackets of Filipino 
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families for the purpose of identifying underprivileged'.ollege students; 
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(d) To issue identification cards which shall be valid anywhere in the country as proof 
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of the eligibility of the underprivileged college studerAs to avail themselves of the 
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discounts; 


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(e) To maintain and regularly update, on a quarterly bas"" the list of underprivileged 
college students who avait themselves of the discount and to review, evaluate and 
assess their academic standing; 
(f) To cancel the identification cards issued for those di, qualified under Section 5 of 
this Act; 
(g) To provide information to the affected establishment.'! under Section 4 of this Act 
for any questions regarding the eligibility of any und>rprivileged college students 
claiming the discounts through the CHED website; 
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(h) To monitor the extent of implementation of this Ad and to coordinate with the 
concerned agencies regarding the imposition of pem,'ities on violators of this Act; 
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(i) To perform such other functions as may be determine" by the CHED Chairperson. 
SEC. 7. Role of the TESDA. The TESDA shall be ill charge of determining th~ 
qualified post-secondary tech-voc beneficiaries under ('lis Act through its Office of 
Technical-Vocational Education and Training (TVET) ~:ystems Development Office 
(TSDO). The TESDA Director-General shall include in ',he regular functions of the 
TSOO the following additional functions: 
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(a) To plan, implement and monitor work programs, (;valuate and submit annual 
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reports in pursuance of the objectives of this Act; 
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(b) To screen applicants, receive documentary proof, and identify who are the eligible 
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underprivileged post-secondary students based on thl' provisions of this Act; 
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(c) To ctosely coordinate wiih the NEDA in determining tf" income brackets of Filipino 
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families for the purpose of identifying underprivileged "'ost-secondary students; 
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(d) To issue identification cards which shall be valid any, ,here in the country as proof 
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of the eligibility of the underprivileged post-secondary students to avail themselves 
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of the discounts; 
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(e) To maintain and regularly update, on a quarterly bal;,s, the fist of underprivileged 
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college students Who avail themselves of the discoi'nts and to review, evaluate 
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and asses their academic standing; 
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(I) To cancel the identification cards issued for those di)qualified under Section 5 of 
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this Act; 
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(g) To provide information to the affected establishment'; under Section 4 of this Act 
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for any questions regarding the eligibility of any un"erprivileged post-secondary 
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students claiming the discounts through the TESDA W"lbsite; 
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(h) To monitor the extent of implementation of this Aco.: and to coordinate with the 
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concerned agencies regarding the imposition of pem':'ties on violators of this Act; 
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and 
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(i) To perform such other functions as may be determine?1 by the TESDA 
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Director-General in the implementation of this -Act. 
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SEC. 8. Tax Incentives. Discounts granted by establishn,ents to underprivileged post-
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secondary and tertiary students under this Act shall be tr"'ated as allowable deduction 
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from the gross income in the computation of the incom(' tax, in accordance with the 
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provisions of the National Internal Revenue Code of 1997. as amended. 
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SEC. 9. Implementing Rules and Regulations. Tte CHED and TESDA, in 
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coordination with the NEDA, the Department of Socia' Welfare and Development 
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(DSWD), the Department of Health (DOH), the Depart';lent of Trade and Industry 
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(DTI), Department of Finance (DOF), and such other '~'Jencies concerned with the 
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establishments which may be affected by this Act, shall ',sue the implementing rules 
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and regulations to carry out the objectives of this Act wii lin thirty (30) days after this 
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law takes effect. 
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SEC. 10. Penalties. The first violation of any provision~ of this Act shall cause the 
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suspension of the license to operate or the business p(i"mit of the establishment or 
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person concerned for not less than one (1) week but not rhore than four (4) weeks and 
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a fine of not less than Twenty Thousand Pesos (P20,00t,.00) but not more than FiftY' 
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Thousand Pesos (P50,OOO.OO). 
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The second violation of any provisions of this Act shall cause the suspension of the 
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license to operate or the business permit of the establishr'ent or the person concerned 
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for not less than four (4) weeks and a fine of not less' .than Fifty Thousand Pesos 
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(P50,OOO.OO), but not exceeding Two Hundred Fifty Tho Jsand Pesos (P250,OOO.OO): 
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Provided, however, that the procedure of notice and hear! Ig shall have been complied 
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with prior to the imposition of the said penalties. 
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If the offender is a corporation, organization or an) similar entity, the officers 
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thereof shall suffer the same penalty imposed on any per,j)n found violating this Act. 
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SEC. 11. Enforcement. Pursuant hereto, the DTI, DOH· and local government units 
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(LGUs), in coordination with the CHED and TESDA, . shall have the mandate to 
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implement the provisions of this Act. After filing of an aPI ;copriate cornplaint, and after 
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due notice and hearing, the proper authorities may al$~) cause the cancellation or 
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revocation of the business permit, permit to operate,. franchise and other similar 
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privileges granted to any business entity that fails to abide, by the provisions of this Act. 
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SEC. 12. Separability Clause. If any provision or P8;t there'of is held invalid or 
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unconstitutional, the other sections or provisions thereof '.hall not be affected thereby. 
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and shall remain in force and effect. 
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SEC. 13. Repealing Clause. All laws, executive orders. decrees, instructions, rules 
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and regulations contrary to or inconsistent with any profision of this Act are hereby 
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amended, repealed or modified accordingly. 
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SEC. 14. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in a newspaper of ge' eral circulation. 
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Approved,