AT A GLANCE:
Under the Expanded Senior Citizens Act, senior citizens shall be entitled to the grant of 20% discount and exemption from the Value-Added Tax (VAT), if applicable, on the sale of good and services from all establishments, for the exclusive use and enjoyment or availment of the senior citizen.
In the case of Orville Ong v. Paul Alcazaren, the Supreme Court acquitted Orville Ong, the general manager of a hotel in Bacolod, of violating the Senior Citizens Act, as amended.
Under the RA 7432, as amended by RA 9994 or the Expanded Senior Citizens Act of 2010, Filipino residents aged 60 and above are entitled to benefits and privileges, including a 20% discount on the utilization of services in hotels and similar lodging establishments, restaurants and recreation centers.
Ong was charged with refusing to grant the senior citizen discount to hotel guests Atty. Alcazaren, 66, and Eric Gadiana, 70.
Ong argued that the hotel already applied a 20% discount on the room rate negotiated for the Cebu Bikers Club, of which the guests were members. The discount was not separately reflected on the official receipt because it had already been deducted from the total amount.
The Municipal Trial Court in Cities, the Regional Trial Court, and the Court of Appeals found Ong guilty.
However, the Supreme Court reversed the findings of the lower courts, ruling that the guests had already received the 20% discount through the club’s negotiated rate. Thus, the hotel was not required to grant an additional 20% discount.
Under the Expanded Senior Citizens Act of 2010, in the purchase of goods and services which are on promotional discount, the senior citizen can avail of the promotional discount or the discount provided herein, whichever is higher.
The Supreme Court explained that granting an additional discount beyond what the law allows would unfairly benefit the customer at the business’ expense, and that while the Senior Citizens Act aims to protect and support senior citizens, its implementation must also be fair and reasonable to businesses.
Related Articles:
- Revised Rules on Special Discounts to Senior Citizens and PWDs on Their Purchase of Basic Commodities (DTI–DA–DOE Joint Administrative Order No. 24-02)
- SHOULD WE HIRE A SENIOR CITIZEN?
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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