Bicam OK’s restoration of senior citizen’s discount
01/22/2010 | 12 NN
A measure seeking to restore price discounts for senior citizens has hurdled the bicameral conference committee, with lawmakers eyeing its ratification next week.
The consolidated version of Senate Bill 3561 and House Bill 6390 approved on Wednesday exempts senior citizens -- defined as Filipinos at least 60 years of age -- from the value-added tax (VAT) to allow them a full 20% discount provided under earlier laws.
The 20% discount was mandated by Republic Act (RA) 7431, which was enacted in 1992, and later expanded via RA 9257 in 2004.
RA 9331 or the new VAT law of 2005, however, effectively trimmed the discount to just 8% when it raised the tax rate to 12%, leading to complaints which legislators said would be rectified once the new law takes effect.
The VAT exemption will apply to:
Senator Pilar Juliana "Pia" S. Cayetano, chairman of the Senate contingent to the bicam, said the bill could be ratified by Congress next week.
Malacañang said President Gloria Macapagal-Arroyo would sign the bill with dispatch.
The Finance department said that while it agreed with the need to restore the senior citizen discount, this could have been done by means other than a VAT exemption. Among the proposals that had been raised was raising the rebate to 30%. - BusinessWorld
The consolidated version of Senate Bill 3561 and House Bill 6390 approved on Wednesday exempts senior citizens -- defined as Filipinos at least 60 years of age -- from the value-added tax (VAT) to allow them a full 20% discount provided under earlier laws.
The 20% discount was mandated by Republic Act (RA) 7431, which was enacted in 1992, and later expanded via RA 9257 in 2004.
RA 9331 or the new VAT law of 2005, however, effectively trimmed the discount to just 8% when it raised the tax rate to 12%, leading to complaints which legislators said would be rectified once the new law takes effect.
The VAT exemption will apply to:
- purchases of medicines including influenza and pneumococcal vaccines, and essential medical supplies, accessories and equipment to be determined by the Health department;
- fees of attending physicians in all private hospitals, medical facilities, outpatient clinics, and home health services;
- fees of licensed health workers providing home healthcare services;
- medical and dental services, diagnostic and laboratory fees in all private hospitals, medical facilities, and outpatient clinics;
- fares for buses, jeepneys, taxis, Asian utility vehicles, shuttle services, public railways, domestic air transport, and other vessels;
- utilization of services in hotels and similar lodging establishments, restaurants and recreation centers;
- admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement; and
- funeral and burial services for the death of senior citizens.
Senator Pilar Juliana "Pia" S. Cayetano, chairman of the Senate contingent to the bicam, said the bill could be ratified by Congress next week.
Malacañang said President Gloria Macapagal-Arroyo would sign the bill with dispatch.
The Finance department said that while it agreed with the need to restore the senior citizen discount, this could have been done by means other than a VAT exemption. Among the proposals that had been raised was raising the rebate to 30%. - BusinessWorld
