Senior citizens to enjoy 20% discount on medicines

MANILA, Philippines - Senior citizens will enjoy the full 20 percent discount on medicine and other products and services starting July 6 with the signing of the implementing rules and regulations of the Expanded Senior Citizens Act of 2010.

The IRR, signed by Social Welfare acting Secretary Celia Yangco, exempts senior citizens from the 12 percent value added tax, effectively allowing them full 20 percent discount on purchases.

Yangco said the law would take effect two weeks after the publication of the IRR in two national broadsheets.

“The IRR will be published on Monday (June 21) in two national broadsheets and would take effect on July 6,” Yangco told a media briefing yesterday at the DSWD head office in Quezon City.

Currently, senior citizens are entitled to only 8 percent of the mandated 20 percent discount because of the VAT. There are around six million senior citizens in the country.

The law, signed by President Arroyo last Feb. 15, defines senior citizens as those 60 years old and above.

The discount covers purchases of medicine and essential medical supplies, accessories and equipment; medical, dental, and diagnostic and laboratory fees; fares for buses, jeepneys, taxis, shuttle services, railways, domestic air and sea transports.

The law also grants five percent discount on consumption of no more than 100 kilowatt-hours of electricity and 30 cubic meters of water per month, provided the individual meters for the utilities are registered in the names of the senior citizens.

The law, authored by Sen. Pia Cayetano and Parañaque Rep. Ed Zialcita, also provides free vaccination against influenza virus and pneumococcal disease for poor senior citizens; P2,000 death benefit assistance; and a monthly social pension of P500.

Yangco clarified that the monthly social pension of P500 would only be available next year because this was not included in the 2010 budget.

“The earliest we can do this is next year, we have to wait for the 2011 budget,” she said.

Lucita Rodriguez, deputy commissioner of the Bureau of Internal Revenue, urged the public to report violations to the BIR at tel. 981-8888 or to the Department of Trade and Industry at 751-3338.