(Conclusion)
Moreover, another privilege granted to senior citizens is the “special discounts” on the purchase of basic commodities, found in Section (a) (1) (j) Republic Act No. 9994. RR No. 9994 provides that such 5 percent discount shall be subject to the guidelines to be issued by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA). The said guidelines are henceforth stated in Joint DTI-DA Administrative Order No. 10-02 Series of 2010 which was issued on 15 October 2010. This 2010 Order repeals DTI DAO No. 3, series of 2005 and DA issued AO No. 37, series of 2005. Such Administrative Order enumerates the goods subject to the said 5 percent discount as it provides an enumeration of what are considered “Basic Necessities” and “Prime Commodities”. A significant change can be gleaned in the recent Administrative Order as it provides new conditions that need to be met before the 5 percent discount can apply:
1. The total amount of said purchase shall not exceed the amount of One Thousand Three Hundred (Php1,300.00) per calendar week without carry-over of the unused amount;
2. The said amount shall be spent on items listed under Section 2(a) and (b) of Joint DTI-DA Administrative Order No. 10-02 which should be commensurate to his/her personal exclusive consumption and/or enjoyment within the calendar week; and
3. The said amount shall be spent on at least four (4) kinds of items under Section 2(a) of Joint DTI-DA Administrative Order No. 10-02.
Another important addition made in the recent Administrative Order is the explicit mention that the 5 percent discount is “without exemption from value-added tax (VAT)” as stated in Section 3 Joint DTI-DA Administrative Order No. 10-02 Series of 2010. This fills up the void of uncertainty of the applicability of this exemption as this was neither discussed in the law nor in the previous Administrative Order.
Another requirement to be complied with by a senior citizen to avail of the 5 percent discount is to acquire a “valid and original Senior Citizen’s Identification Card issued by the Head Office of Senior Citizens Affairs (OSCA) of the place where the senior citizen resides (Section 4 Joint DTI-DA Administrative Order No. 10-02 Series of 2010).” Along with this, a purchase booklet issued by the OSCA shall be presented to the retailer every time a purchase of basic necessities and prime commodities are made (Section 5 Joint DTI-DA Administrative Order No. 10-02 Series of 2010). The Administrative Order also provides that for goods and services which are also the subject of promotional discounts by a retailer, the senior citizen can avail of either the promotional discount or senior citizen 5 percent discount, whichever is higher. There is also a prohibition on double discounts such that if the senior citizen is also considered as person with disability (PWD) entitled to 5 percent discount, the senior citizen shall avail of the privilege of 5percent discount as either a senior citizen or PWD.
It is evident that with the enactment of the Expanded Senior Citizens Act and its implementing rules, the government has paved the way to improve the quality of life of the elderly. Such legislation is a manifestation of the much beloved aspect of Filipino culture which gives much respect and regard to its “lolo’s” and “lola’s’”, “manong’s” and “manang’s” who are the caretakers of our ethos and vessels of our tradition and culture.
(McDonald G. Abalos is a Supevising Senior for Tax of Manabat Sanagustin & Co., CPAs, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity.
The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG in the Philippines. For comments or inquiries, please email manila@kpmg.com or mdabalos@kpmg.com)