Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT 
GRANTING DISCOUNT ON BASIC AND EDUCATION 
SERVICES TO UNDERPRIVILEGED STUDENTS AT ALL LEVELS, INCLUDING 
THOSE ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) 
EXPLANATORY NOTE 
The 1987 Constitution mandates 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. Despite measures enacted to ensure that 
underprivileged students access quality education, the financial burden due to rising 
prices of commodities still weighs heavily in their everyday life.  
When families struggle to survive due to the present economic climate, 
students’ education is directly affected. As such, this measure proposes a discount on 
basic and education services to somehow alleviate the financial strain felt by 
underprivileged families. The promise measure provides for discounts for food, 
medicine, instruction materials, school supplies, electronic devices, tuition fees, as 
well as admission to museums and activities.  
This bill also gives establishments incentives for granting the said discounts to 
underprivileged students. Finally, this measure lays down the role of the Department 
of Education (DepEd), the Commission on Higher Education (CHED), and Technical 
Education and Skills Development Authority (TESDA) in the implementation of this 
program. 
In view of the foregoing, the passage of this bill is earnestly sought. 
October 6, 2022
1:14 pm
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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
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. 
Towards this end, it is hereby the policy of the State to enact measures that will ensure 
that education shall remain accessible to all Filipinos by easing the financial burden of 
families.  
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 sells 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 sells electronic devices 
including but not limited to computers, and other electronic devices which 
may hereinafter be prescribed: Provided, That these establishments may 
claim the cost as an 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 on 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 an 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. 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 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;  
g) 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 
h) To perform such other functions as may be determined by the DepEd 
Secretary and CHED Chairperson. 


 
Sec. 7. Role of TESDA. – The TESDA shall oversee the determination of 
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; 
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 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; 
g) 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 
h) 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 an allowable deduction 
from the gross income in the computation of the income tax, in accordance with the 
provisions of NIRC of 1997, as amended. 
 
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 government 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. 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. 
 


Sec. 11. 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. 12. 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,.