Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO103

Introduced by HONORABLE FERDINAND MARTIN G. ROMUALDEZ

EXPLANATORY NOTE

The 1987 Philippine Constitution proclaims that the States values the dignity
of every human person and guarantees full respect for human rights. It also
mandates an integrated and comprehensive approach which shall endeavor to make
essential goods, health and other social services available to all the people at
affordable cost with the priority for the needs of the underprivileged sick, elderly,
disabled, women, and children. These provisions have inspired the enactment of
laws that provide social, political and economic opportunities for disadvantaged
segments of Philippine society, such as senior citizens and persons with disability
(PWD).

On March 24, 1992, a law that has a very comprehensive positive bias for
PWDs was approved, the Republic Act No. 7277, “Providing for the Rehabilitation,
Self-development and Self-reliance of Disabled Persons." It was later amended on
April 30, 2007, by Republic Act No. 9442, which, provides certain privileges and
incentives to PWDs. The approval on April 6, 2010 of Republic Act 10070
mandating all local government units to adopt and establish social and structural
mechanisms to serve and promote the interest, rights and welfare of PWDs, further
amended RA 9442.

This bill seeks to amend Section 32 of RA 7277, as amended by RA 9442,
providing that PWDs shall be exempted from Value Added Tax (VAT) in addition to
the discount they are already enjoying for the classes of goods and services
enumerated in RA 9442. This is an equalizing measure because this will accord
PWDs exactly the same privilege enjoyed by senior citizens, who are exempted from
the VAT by virtue of RA 9994. By way of example, at present senior citizens enjoy a
P20,00 discount or the equivalent of 20% for every P100.00 value of good or service
purchased by them. On the other hand, persons with disability effectively enjoy only
P12.00 for every P100.00 worth of good or service because the law does not exempt
them from VAT, which is imposed on the net value of the good or service or 10% of
the P80.00 after deducting P20.00, representing the 20% discount granted in RA
9442, for every P100.00 worth of good or service purchased

In the view of the foregoing, approval of the bill is earnestly requested.

td von)oe


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNO,_ 1039

Introduced by HONORABLE FERDINAND MARTIN G. ROMUALDEZ

AN ACT
EXEMPTING PERSONS WITH DISABILITY FROM THE VALUE-ADDED TAX ON
CERTAIN GOODS AND SERVICES, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7277, AS AMENDED, OTHERWISE KNOWN AS THE “MAGNA CARTA
FOR PERSONS WITH DISABILITY,” AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Section 32 of Republic Act No. 7277, otherwise known as the
“Magna Carta for Persons with Disability,” as amended, is hereby amended to read
as follows:

“SEC. 32. Persons with disability shall be entitled to the following

(a) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, from all establishments
relative to then utilization of all services in hotels and similar lodging
establishments; restaurants and recreation centers for the exclusive use or
enjoyment of persons with disability;

“(b) A minimum of twenty percent (20%) discount AND EXEMPTION FROM
THE VALUE-ADDED TAX (VAT), IF APPLICABLE, on admission fees
charged by the theaters, cinema house, concert halls, circuses, carnivals and
other similar places of culture, leisure and amusement for the exclusive use or
enjoyment of person with disability;


“(c) At least twenty percent (20%) discount AND EXEMTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, on the purchase of medicines
in all drugstores for the exclusive use or enjoyment of persons with disability

*(d) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, on medical and dental
services including diagnostic and laboratory fess such as, but not limited to x-
rays, computerized tomography scans and blood tests, in all government
facilities, subject to guidelines to be issued by the Department of Health
(DOH), in coordination with the Philippine Health Insurance corporation
(PHILHEALTH);

‘(e) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, on medical and dental
services including diagnostic and laboratory fees, and professional fees of
attending doctors in all private hospitals and medical facilities, in accordance
with the rules and regulations to be issued by the DOH, in coordination with
the PHILHEALTH;

“(f) At least twenty percent (20%) discount AND EXEMPTION FROM THE
VALUE-ADDED TAX (VAT), IF APPLICABLE, in public railways, skyways
and bus fare for the exclusive use and enjoyment of persons with disability;

"(h) Educational assistance to persons with disability, for them to pursue
primary, secondary, tertiary, post tertiary, as well as vocational or technical
education, In both public and private schools, through the provision of the
scholarships, grants, financial aids, subsidies and other incentives to qualified
persons with disability, including support for books, learning materials, and
uniform allowance to the extent feasible: Provided, That persons with
disability shall meet minimum admission requirements;

“(i) To the extent practicable and feasible, the continuance of the same
benefits and privileges given by the Government Service Insurance System
(GSIS), Social Security System (SSS), and PAG-IBIG, as the case may be, as
are enjoyed by those in actual service;


“(j) To the extent possible, the government may grant special discounts in
special programs for persons with disability or purchase of basic commodities,
subject to guidelines to be issued for the purpose by the Department of Trade
and Industry (DTI) and the Department of Agriculture (DA); and

"(k) The above-mentioned privileges are available only to persons with
disability who are Filipino citizens upon submission of any of the following as
proof of his/her entitlement thereto

(I) An identification card issued by the city or municipality mayor, the
barangay captain of the place where the person with disability resides;

“(II) The passport of the persons with disability concerned; or

“(III) Transportation discount fare Identification Card (ID) issued by the
National Council for the Welfare of Disabled Persons (NCWDP).

“The privileges may not be claimed if the persons with disability claims a
higher discount as may be granted by the commercial establishment and/or
under other existing laws or in combination with other discount program/s.

“The establishments may claim the discounts granted in sub-sections (a), (b),
(e), (f) and (g) as tax deductions based on the net cost of the goods sold or
services rendered: Provided, however, That the cost of the discount shall be
allowed as deduction from the 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 value-added tax if applicable, shall 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
(NIRC), as amended.”

SEC. 2. The Department of Social Welfare and Development, the National

Council on Disability Affairs (NCDA), the DOH and the Bureau of Internal Revenue,
in consultation with the concerned Senate and House committees and other

agencies, organizations and establishments shall formulate an implementing rules

and regulations pertinent to this Act within six months after its effectivity.


SEC. 3. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in two newspapers general circulation in the Philippines.

Approved,