Full 20% discount to all senior citizens

SUPPLEMENTAL KNOWLEDGE
Jhunie B. Wahayna

Starting July 06, 2010, all the senior citizens in the country will enjoy additional discounts. The Department of Social Works and Development (DSWD) has signed the implementing rules on the law granting senior citizens exemption from the value-added tax (VAT).

The guideline signed by the DSWD is the implementing rules and regulations of Republic Act 9994 or the Expanded Senior Citizen Act of 2010, which was published on June 21, 2010 on national daily newspapers.

Under the new law, senior citizens are exempted from 12% VAT, thus allowing them to fully enjoy the 20% discount on essential goods and services, including but not limited to food, medicines, and professional fees of doctors. Prior to the implementation of the Expanded Senior Citizen Act, they were only able to enjoy 8% of the supposed 20% discount because of the VAT.

With the implementation of the law, senior citizens will also be able to get discount on fares for land, air and sea travel, as well as hotel stay, admission to theaters and movie houses, concerts and similar leisure activities.

There is also a provision in the law that allows a 5% discount on monthly water and electricity bills as long as the household meters are registered under the senior citizen's name and consumption does not exceed 100 per kilowatt hour for electricity, and 30 cubic meters for water.

Indigent or non-pensioner senior citizens will also be entitled to a monthly pension of P500, free medical insurance and disability insurance through Phil Health, and burial assistance worth P2,000.

Every senior citizen in the world deserves some slack. They have worked so hard and paid their dues to society, it is the society's turn to serve them. However, some businesses, because of low margins and/or greed totally refuse to comply with the law or have drafted internal regulations undermining it.

The senior citizens are like soldiers who refuse to die or fade away. Some of them have united and has started to fight back due to number of establishments have been reported to adamantly refuse to provide the benefits in part or in full. A number of senior citizens have even refused to avail of the Senior Citizens Card claiming that the refusals to provide them with the benefits have caused public spats and embarrassments because it made them look like beggars.

Looking at the provisions of the law, penalties for violations of the law are as follows: P 50,000 to 100,000 and imprisonment of 6 months to 2 years for the first violation. P 100,000 to P200,000 and imprisonment of 2 to 6 years for the succeeding violations.

The measure also expands the penalties for establishments that refuse to grant the benefits. Establishments found violating the law, including their owners, managers and personnel, may be fined a penalty of not less than P10,000 but not more than P50,000, or imprisonment of not less than a month but not more than six months.

The law, right or wrong, is the law. Until it is repealed, there is nothing we can do but give to Ceasar what belongs to him. The law must be applied to all establishments who will violate Republic Act 9994, and who will not respect and give discount to our senior citizens.