MANILA, Philippines - Sen. Pia Cayetano yesterday welcomed the announcement of the Department of Social Welfare and Development (DSWD) on the implementation of the Internal Rules and Regulations (IRR) of the Expanded Senior Citizens Act of 2010.
Cayetano said the IRR would in effect implement the long-awaited Expanded Senior Citizens Act (Republic Act 9994) in exempting the elderly from paying the 12 percent Value-Added Tax (VAT).
“The law would give them much-needed relief from the rising costs of services and especially medicine,” she said.
Cayetano also called on the Bureau of Internal Revenue (BIR) to expedite the release of revenue regulations that would govern establishments in the application and invoicing of senior citizens’ discount and VAT exemption.
“But I still hope that the BIR would be able to comply even before the 30-day period given them under the IRR, so our lolos and lolas need not wait any longer,” she said.
Cayetano, however, said the IRR should be published before VAT exemption for senior citizens becomes fully effective.
She said the IRR should be published in major newspapers and will only be deemed effective 15 days after publication.
“After this, the BIR will be given another 30 days to come up with revenue regulations to govern establishments in the application and invoicing of the discount and VAT exemption,” she said.
The DSWD on Friday said senior citizens would enjoy the full 20 percent discount on medicine and other products and services starting July 6 with the signing of the IRR for the Expanded Senior Citizens Act of 2010.
The IRR, signed by acting DSWD Secretary Celia Yangco, exempts senior citizens from the 12 percent VAT, effectively allowing them full 20 percent discount on purchases.
Yangco said the law would take effect two weeks after publication of the IRR in two national broadsheets.