THE HOUSE of Representatives on Wednesday approved on second reading two bills seeking to enhance the tax discounts being provided to senior citizens and persons with disabilities (PWDs), standardizing the 20% tax discount being provided to them across all establishments.
Through voice voting, congressmen agreed to expand state welfare provided to the elderly and PWDs by granting additional tax discounts to utility bills as well as medical perks.
“The bills will further expand senior citizen and disability benefits, emphasizing that supporting these sectors is a shared duty between the state and society,” Albay Rep. Jose Maria Clemente S. Salceda told BusinessWorld in a Viber message about House Bills (HB) No. 10312 and 10314.
The bills seek to harmonize the tax discounts being provided to senior citizens and PWDs by allowing them to claim additional business discounts on top of the 20% tax discount provided by Republic Act (RA) No. 9994.
Congressmen also agreed to allow businesses to claim the provided discounts under the proposed measure as tax incentives. Under RA No. 9994, stores and establishments may only claim tax deductions based on the costs of the goods sold or the services rendered.
“(HB No. 10312) removes the choice for our senior citizens and PWDs on whether they prefer promo discounts or the discounts mandated by the law,” Party-list Rep. Erwin T. Tulfo said during his sponsorship speech before the House plenary. “The measure provides that the existing 20% discount and exemption from value-added tax (VAT) on goods and services, as well as the special discount on the purchase of basic necessities and prime commodities (are) granted (to) them.”
“Furthermore, establishments can now claim all these discounts as deductions,” he added.
On the other hand, HB No. 10314 seeks to grant elderly Filipinos and PWDs a 20% discount and VAT exemptions on establishment parking lots and expressway use. They would also be granted a 15% discount on utility bills for the first 100 kilowatt-hour of electricity and 30 cubic meters of water consumption.
Businesses employing seniors and PWDs would be granted a 25% tax incentive based on the total amount of salaries being paid to them.
They would also be granted free medical, dental, and vocational training programs under the bill. — Kenneth Christiane L. Basilio
