Mark Villar pushes tax credits for elderly, PWD discounts

MANILA, Philippines — Sen. Mark Villar has filed a bill seeking to grant direct tax credits to business establishments that provide mandatory discounts to senior citizens and persons with disabilities (PWDs), aiming to protect marginalized sectors while easing financial pressures on businesses.

Under Senate Bill 2494, or the proposed Tax Credit for Senior Citizens and Persons with Disability Discount Act, Villar seeks to amend Republic Act 9994 (Expanded Senior Citizens Act of 2010) and RA 7277 (Magna Carta for Persons with Disability).

The bill seeks to treat mandatory discounts on qualified goods and services as tax credits rather than mere tax deductions, enabling businesses and the micro, small and medium enterprises (MSME) to apply these costs directly against their national internal revenue tax liabilities.

“Giving senior citizens and persons with disabilities discounts is part of our social protection programs. But the burden of giving these discounts should not entirely be carried by businesses,” Villar said.

He said there should be a fair system that allows the giving of benefits to the elderly and persons with disability and helps businesses and the MSMEs to continue operating.

Under the bill, tax credits generated from senior citizen discounts may be carried over to succeeding taxable years.

The bill also retains the tax deduction mechanism for the minimum five-percent discount on qualified monthly water and electricity consumption of senior citizens.