Tuesday, February 26, 2008 Malig: Protecting the elderly By Jun A. Malig Cognition
THE law provides that senior citizens must have 20 percent discount in the sale of goods and services.
Known as the Expanded Senior Citizens Act of 2003 (Republic Act 9257), the edict is the expansion of the older law (RA 7432). It provides additional benefits and privileges to the elderly.
Under the said law, therefore, senior citizens of the land shall enjoy the 20 percent discount from all establishments relative to the utilization of services in hotels and similar lodging establishment, restaurants and recreation centers, and purchase of medicines in all establishments for their exclusive use or enjoyment, including funeral and burial services.
They are also eligible for the same discount on medical and dental services, and diagnostic and laboratory fees, including professional fees of attending doctors in all private hospitals and medical facilities; in fare for domestic air and sea travel; in public railways, skyways and bus fare; and on admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals, and other similar places of culture, leisure and amusement.
However, in truth and in actuality, senior citizens enjoy only eight percent discount from sale and service establishments. Thanks to Republic Act (RA) 9337, the Expanded Value-Added Tax Act of 2005.
The law, which outdates the Expanded Senior Citizens Act of 2003, "steals" 60 percent from the senior citizens' lawful discount.
The expanded universal taxation eclipses the expanded discount for the elderly.
Recently, a member of the House of Representatives decided to do something about this matter.
Ilocos Sur Representative Ronald Singson filed House Bill (HB) 3366, which seeks to exempt senior citizens from the value added tax.
"One way of appreciating their lifelong contribution to society is to exempt them from the value-added-tax on the sale of goods and services, thus the National Internal Revenue Code of 1997 must be amended in order to allow our senior citizens the full benefits of 20 percent discount under RA 9257," Singson told his colleagues recently.
His bill, known as "An Act Exempting Transactions Involving the Sale of Goods and Services to Senior Citizens, Amending for the Purpose the National Internal Revenue Code, as Amended," is tribute to the senior citizens, whom he described as the ones who "have spent the best and most productive years of their lives in the service of the nation."
I personally believe in the rationale of Singson's bill. Why would the government grant the elderly a 20 percent discount on the sale of goods and services if it will also burden them with 12 percent tax for service and goods they buy? The current discount e-VAT setup for the elderly doesn't make sense at all.
