DSWD: Senior citizens still get 20% discount

Notwithstanding the 12 percent Expanded Value Added Tax added to the price of basic commodities and services, senior citizens still enjoy the 20 percent discount from these items, according to the Department of Social Welfare and Development.

DSWD’s officer in charge Luwalhati Pablo clarified that the 20 percent discount is removed first before the 12 percent E-VAT is added into the amount that a senior citizen should pay.

Based on the Bureau of Internal Revenue guidelines, under Regulations No. 1-2007, the senior citizens’ discount is computed as in the following example:

Amount of Sale (without VAT)-P100, less 20 percent sales discount-P20, equals the Valuable Sale-P 80, then add 12 percent EVAT (based on P80 VS)-P 9.60, and the amount the senior citizen pays is P 89.60.

Pablo said that senior citizens must refer to this method of computing the 20-percent discount privilege vis-à-vis the 12 percent E-VAT.

"We are illustrating the computation to avoid further confusion among our senior citizens," Pablo explained.

Pablo however said that there is now clamor from senior citizens’ groups for a reconsideration of the basis of the computation but she said the BIR regulations are still in effect at this time.

The 20 percent discount privilege is mandated by Republic Act 9257, or the Expanded Senior Citizen’s Act of 2003.

The DSWD heads the National Coordinating and Monitoring Board, which is an inter-agency body that oversees the implementation of RA 9257. — Jasmin R. Uy/RAE