Filipinos aged 60 and above were urged to register with the Office of Senior Citizens Affairs or with the social welfare department to secure exemptions from the value added tax.
“Senior citizens must register so they benefit from the new law that intends to lessen the impact of the Expanded Value-Added Tax (E-VAT) law on the elderly," Department of Social Welfare and Development (DSWD) acting secretary Celia Capadocia-Yangco told GMANews.TV.
The June 17 signing of the implementing rules and regulations (IRR) of Republic Act 9994 (or the Expanded Senior Citizens Act of 2010) grants discounts on various products and services to five million elderly people.
The IRR will take effect on July 6.
Senior citizens will get the following benefits that are excluded from the Senior Citizens Act of 1992:
A 20-percent discount and exemption from the VAT on the sale of goods and services (medicines, medical and dental fees, transport fares, services in hotels and restaurants, admission fees in theaters and other places of leisure)In case of discount promos, the senior citizens shall avail themselves of either the promotional discount or the 20-percent discount, whichever is higher. Mandatory PhilHealth coverage;
Free medical and dental service, diagnostic and laboratory fees in all government facilities;
A monthly stipend of P500 – for indigents, a P1,500-monthly stipend and free vaccination against the influenza virus and pneumococcal disease;
Five-percent discount on electric and water consumption, provided that the individual meters for the utilities are registered in the name of the senior citizen, and that monthly consumption should not exceed 100 kilowatt hour and 30 cubic meters of water;
P2,000 death benefit assistance; and
Educational assistance for those who shall meet school admission requirements.However, the new VAT exemption on discounted senior citizen purchases will require the issuance of new Revenue Regulations by the Bureau of Internal Revenue (BIR), and for the approval of the Department of Finance (DOF), Yangco said.
Medical or health-related privileges, , whether discounted or for free and the discounts on purchase of goods and services from leisure and recreation centers shall be subject to the supplemental guidelines to be issued by the Department of Health (DOH) and the Department of the Interior and Local Government, respectively.
Issuance of such guidelines should be within 30 days from the effectivity of the IRR.
Likewise, discounts on electric and water utilities shall be covered by supplemental guidelines issued by the Energy Regulatory Commission (ERC), the Metropolitan Waterworks and Sewerage System and the Local Water Utilities Administration (LWUA), respectively, six months after the effectivity of the IRR.
“The monthly social pension of P500 for indigent senior citizens shall be subject to DSWD guidelines which shall include the development of criteria for identification and selection of beneficiaries, the mechanisms for establishing a database, the system for delivery or release of the benefits, as well as monitoring and evaluation to facilitate the implementation of this additional government assistance," Yangco said.
She added that the actual disbursement of this benefit shall likewise be subject to availability of funds pending the release of the DSWD budget by the Department of Budget and Management.
Meanwhile, the Social Pension is also subject to a review every two years by Congress, in consultation with the DSWD.
Moreover, the P2, 000 death assistance is intended for indigent senior citizens who shall be identified based on DSWD guidelines.
When asked on the possible creation of a senior citizens’ commission, Yangco said it is also good to create such a commission as long as the budget for senior citizens will not be affected.
Congressman-elect and outgoing Quezon City Mayor Feliciano Belmonte said he will support the law just as she supported the Senior Citizens Act of 1992 (Republic Act No. 7432) during his term as mayor.
RA 9994 was signed into law by President Gloria Macapagal-Arroyo on Feb. 15, 2010. - Fernando dela Cruz/LBG, RJAB Jr
