Seniors VAT-free starting today

MANILA, Philippines - The government will implement today the law which exempts senior citizens from the value added tax (VAT).

Republic Act 9994 or the Expanded Senior Citizens Act of 2010 grants a 20-percent discount for senior citizens on purchases of food and medicine, as well as other services in restaurants and movie houses.

By December this year, senior citizens will also get a five-percent discount on electric and water consumption, provided that the meters for these utilities are registered under their names and are below 100 kilowatt-hours for electricity and 30 cubic meters for water.

Starting next year, indigent senior citizens will also receive a monthly social pension of P500 and free influenza vaccination.

The Department of Social Welfare and Development (DSWD) signed the implementing rules and regulations for RA 9994 last June 18.

Senior citizens have only been able to enjoy eight percent of the supposed 20-percent discount because of the VAT.

Lucita Rodriguez, deputy commissioner of the Bureau of Internal Revenue, urged the public to report violations of the law to the BIR at tel. no. 981-8888 or to the Department of Trade and Industry at 751-3338.

The DSWD said there are about six million senior citizens in the country.