ANGARA: REVIVE TAX EXEMPTION FOR SENIOR CITIZENS

Sen. Edgardo J. Angara is calling for the amendment of existing laws to exempt senior citizens from the value-added tax in goods and services. SB 65 seeks to extend the "Expanded Senior Citizens Act of 2003" to reinstate discounts for senior citizens that were overwritten by succeeding value-added tax laws.

In 1992, Sen. Angara authored and sponsored the Senior Citizens Law that granted 20% discount on their purchase of goods and services, medical and dental care, transport fare, funeral and burial services, among others. Sen. Angara shares, "The 20% discount eased their daily budget allowing them to maximize their spending, and improved the well-being of senior citizens permitting them full participation in society."

The previous law granted, among others, a 20% discount in hotels and lodging establishments, restaurants and recreation centers, purchase of medicines, laboratory tests and diagnostic services; a minimum of 20% discount in admission fees in theaters and cinemas, concert halls, and other similar places of leisure and amusement; a 20% discount in fares for domestic air and sea travels as well as in public railways, skyways and bus fares; and discount programs on purchases of basic commodities in markets and shopping centers.

However, with the passing of the Expanded Value Added Tax (EVAT, RA 9337) in 2005, all goods and services were priced at a further 10% of their gross prices; and later in 2006 the President decreed an increase of the EVAT to 12%. Consequently, senior citizens only enjoyed discounts at 8% for everything they availed. This caused a decrease in spending not only by senior citizens, but the general public as well who cater to the needs of their elderly, thereby making a dent in the continued growth of the Filipinos' purchasing power.

Angara, Chair of the Senate Committee on Finance, asserts of his intention to change the situation: "Let us continue to motivate and encourage our elderly to contribute to nation building; to encourage their families and other communities to reaffirm their tradition of caring for the elderly."

This bill will now address the eventual irrelevance of the original 20% provision for exemption and will exempt senior citizens from EVAT, thereby giving them back the 20% discount intended for them to enjoy.

"Let us not begrudge them of their miles to walk before they sleep," Sen. Angara reminds.