Expanded Senior Citizens Act exempts elders from VAT
Posted on June 17th, 2010
The senior citizens in the country will enjoy additional discounts starting on July 6, 2010. That is because 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 will published on June 21.
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.
Aside from the VAT exemption, the expanded coverage allows senior citizens to get discounts on fares for land, air and sea travel, as well as hotel stay, admission to theaters and movie houses, concerts and similar activities.
If the household water and electric meters are registered under the senior citizen’s name, and the their consumption does not exceed 100 per kilowatt hour for electricity, and 30 cubic meters for water, the law provides them to have a 5% discount on their monthly utility bills.
Additional benefits of the expanded coverage also include free medical insurance and disability insurance through Philhealth, burial assistance worth P2,000. These are available to indigent or non-pensioner senior citizens who would also be entitled to a monthly pension of P500.
Concerns were raised however regarding the exemption of senior citizens from VAT, saying that it could reduce the government revenues. Finance undersecretary Gil Beltran estimated the loss in foregone revenues to reach P1.68 billion.
Magandang balita yan para sa mga senior citizens. Ang mga estudyante rin sana eh makakuha ng additional discount.
hooray for the expanded senior citizens act. it is about time that this country seriously takes care of its senior citizens. i don’t care much about the loss in tax revenues due to this act, there are many other solutions that the government should be looking at, like corruption and fund misappropriation problems. but of course, our senior citizens should also not abuse this privilege.
kung may monthly stipend na 500 ang senior? bakit yung both parentas ko walang natatanggap? ano ang basis nila para magbigay?