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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Section 1, Article XIV of the 1987 Constitution provides that the State shall protect and 
promote the right of all citizens to quality education at all levels and shall take appropriate 
steps to make such education accessible to all. With the onslaught of the COVID-19 
pandemic, learning methods had shifted significantly to online platforms that forced 
learners to adjust. However, with the increasing prices of commodities, fuel prices, 
decrease in purchasing power, and disproportionate minimum wage levels, among other 
reasons, not all families and their children can cope up to the new normal learning modes 
due to inaccessibility. 
According to the data of the Department of Education, there were at least 1.1 million 
students who did not enroll for school year 2020-2021 due to lack of internet access, 
among other reasons.1 On top of this, 2017 data of Philippine Statistics Authority showed 
that 9% or 3.53 million of the estimated 39.2 Filipinos aged 6 to 24 years old were 
considered out-of-school youth (OSYs) and that around 50% of those OSYs belong to 
families whose income fall within the bottom 30% of the population based on their per 
capita income. 2 These data had surely ballooned with the health and food crises that we 
are currently facing. 
Due to this, even more that the State must ensure its adherence to the provision of the 
Constitution to make education accessible to all. With these in mind, this measure aims 
to provide a discount to all underprivileged students from basic education, post-
secondary non-degree technical-vocational courses, and degree programs in college 
level. The discount includes entitlement of 5% discount to food establishments, 
medicines, textbook, and school supplies, prescribed electronic devices for purposes of 
online/distance learning, tuition fees, miscellaneous and other school fees, and on 
museum, theaters, and cultural events. 
1 https://newsinfo.inquirer.net/1577764/unicef-many-children-drop-out-as-in-person-classes-reopen 
2 https://www.pna.gov.ph/articles/1129909 
July 12, 2022
5:25 pm
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Without prejudice to all other policy interventions on education, this bill will surely 
significantly provide relief on the economic challenges continuously faced by our 
children, youth, and their families in pursuing their education. 
The passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT 
GRANTING FIVE PERCENT (5%) DISCOUNT ON BASIC AND EDUCATION 
SERVICES TO UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING 
THOSE ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) 
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." 
Sec. 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. 
Sec. 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 (P250,000.00), subject to review by the NEDA every three (3) years, is
deemed an Underprivileged Student;
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b) 
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; 
c) 
Basic Services refer to basic necessities such as food for snacks and meals 
and medicines; and 
d) 
Education Services refer to education-related expenditures such as tuition, 
miscellaneous and other school fees, books, and school supplies. 
 
Sec. 4. Discount for Underprivileged Student. — Underprivileged student shall be 
entitled to the following: 
a) 
On Food Establishments - A five percent (5%) 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; 
 
b) 
On Medicines - A five percent (5%) 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; 
 
c) 
On Textbooks and School Supplies - A five percent (5%) 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; 
 
d) 
On Prescribed Electronic Devices for purposes of Online/Distance Learning – 
A five percent (5%) discount shall be granted to underprivileged students by 
establishments anywhere in the country that sell electronic devices including 


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but not limited to computers, 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 five percent (5%) 
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 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. 
 
f) 
On Museums, Theaters, and Cultural Events - A five percent (5%) 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. 
 
Sec. 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 


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of this Act: Provided, That these grounds will not defeat the purpose of liberally 
granting such to underprivileged students. 
 
Sec. 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; 
c) 
To closely coordinate with the NEDA in determining the income bracket 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 primaries, 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; 
g) 
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; 
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. 
 
Sec. 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-


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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; 
c) 
To closely coordinate with the NEDA in determining the income of Filipino 
families for the purpose of identifying underprivileged post-secondary 
students; 
d) 
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; 
g) 
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 discount 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. 
 
Sec. 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. 
 


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 Sec. 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. 
 
Sec. 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 (P50,000,000). 
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. 
 
Sec. 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. 
 
Sec. 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. 
 
 


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Sec. 13. Repealing Cause. — 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. 
 
Sec. 14. Effectivity Cause. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
Approved,