(Manila, 4th) House Majority Leader and Leyte's First District Representative, Romualdez, suggested that businesses should continue to provide the 20% discount and 12% value-added tax (VAT) exemption for seniors and persons with disabilities (PWDs), even when offering promotional discounts.
He pointed out that this proposal has already been filed through House Bill No. 16, which aims to strengthen the preferential rights granted under the “Senior Citizens Act” (Republic Act No. 7432) and the “Magna Carta for Persons with Disabilities” (Republic Act No. 7277).
Romualdez emphasized that, according to the bill, the discounts enjoyed by seniors and PWDs should be given on top of any existing promotional or special offers, rather than offset against each other. He stated: “Any promotional discounts given to the public should not be considered as a substitute for compliance with the requirements of the law.”
He added that this bill would help address conflicts arising from differing interpretations of current laws between businesses and seniors or PWDs.
Under current laws, seniors and PWDs are entitled to a 20% discount and an exemption from the 12% value-added tax when purchasing goods or services. However, in practice, businesses often refuse to grant the extra discount when there are ongoing promotions, leading to complaints and confusion.
To balance the rights of consumers and the interests of businesses, the bill also proposes that sales made to seniors and PWDs, including the corresponding tax exemptions and special discounts, be considered as deductible operating expenses, in accordance with Section 34 of the 1997 National Internal Revenue Code.
“This proposal aligns with the national policy of promoting social justice and dynamic development, aiming to ensure that all people share in the nation’s prosperity and are lifted out of poverty,” he said.
This bill was jointly filed by Romualdez and Tingog party-list Representatives Andrew Julian Romualdez and Jude Acidre.