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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
- Republic Act No. 10754, otherwise known as the Act Expanding the Benefits and Privileges of Persons with Disability (PWD) has been enacted to give full support to the improvement of well-being and integration into mainstream society of persons with disability.
- It is the objective of Republic Act No. 10754 to provide persons with disability the opportunity to participate fully into the mainstream of society by granting them at least twenty (20%) discount and exemption from the value added tax on the sale of certain goods and services identified under Republic Act No. 9442 for the exclusive use, enjoyment or availment of persons with disability. (Section 4, IRR of R.A. No. 10754)
Republic Act No. 10754, otherwise known as the Act Expanding the Benefits and Privileges of Persons with Disability (PWD) has been enacted to give full support to the improvement of well-being and integration into mainstream society of persons with disability.
It is the objective of Republic Act No. 10754 to provide persons with disability the opportunity to participate fully into the mainstream of society by granting them at least twenty (20%) discount and exemption from the value added tax on the sale of certain goods and services identified under Republic Act No. 9442 for the exclusive use, enjoyment or availment of persons with disability. (Section 4, IRR of R.A. No. 10754)
Who are Persons with Disability (PWD)?
The law says:
Persons with Disability refer to “those who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others.” (Section 5.1, IRR of R.A. No. 10754)
What are the Expanded benefits of Persons with Disability?
Persons with Disability shall be entitled to at least 20 percent (20%) discount and exemption from the value-added tax (VAT) on sale of various goods and services for the exclusive use of and enjoyment of such PWD.
The law says:
Section 1 of R.A. No. 10754, which amends Section 32 of R.A. 7277 or the Magna Carta for persons with Disability provides that:
SECTION 1. Section 32 of Republic Act No. 7277, as amended, otherwise known as the “Magna Carta for Persons with Disability”, is hereby further amended to read as follows:
“SEC. 32. Persons with disability shall be entitled to:
a) At least twenty percent (20%) discount and exemption from the value-added tax (VAT), if applicable, on the following sale of goods and services for the exclusive use and enjoyment or availment of the PWD:
(1) On the fees and charges relative to the utilization of all services in hotels and similar lodging establishments; restaurants and recreation centers;
(2) On admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement;
(3) On the purchase of medicines in all drugstores;
(4) On medical and dental services including diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans and blood tests, and professional fees of attending doctors in all government facilities, subject to the guidelines to be issued by the Department of Health (DOH), in coordination with the Philippine Health Insurance Corporation (PhilHealth);
(5) On medical and dental services including diagnostic and laboratory fees, and professional fees of attending doctors in all private hospitals and medical facilities, in accordance with the rules and regulations to be issued by the DOH, in coordination with the PhilHealth;
(6) On fare for domestic air and sea travel;
(7) On actual fare for land transportation travel such as, but not limited to, public utility buses or jeepneys (PUBs/PUJs), taxis, asian utility vehicles (AUVs), shuttle services and public railways, including light Rail Transit (LRT), Metro Rail Transit (MRT) and Philippine National Railways (PNR); and
(8) On funeral and burial services for the death of the PWD: Provided, That the beneficiary or any person who shall shoulder the funeral and burial expenses of the deceased PWD shall claim the discount under this rule for the deceased PWD upon presentation of the death certificate. Such expenses shall cover the purchase of casket or urn, embalming, hospital morgue, transport of the body to intended burial site in the place of origin, but shall exclude obituary publication and the cost of the memorial lot.
b) Educational assistance to PWD, for them to pursue primary, secondary, tertiary, post tertiary, as well as vocational or technical education, in both public and private schools, through the provision of scholarships, grants, financial aids, subsidies and other incentives to qualified PWD, including support for books, learning materials, and uniform allowance to the extent feasible: Provided, That PWD shall meet the minimum admission requirements;
c) To the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), Social Security System (SSS), and Pag-IBIG, as the case may be, as are enjoyed by those in actual service;
d) To the extent possible, the government may grant special discounts in special programs for PWD on purchase of basic commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA); and
e) Provision of express lanes for PWD in all commercial and government establishments; in the absence thereof, priority shall be given to them.” (Section 1 of R.A. No. 10754)
Further, the Implementing Rule and Regulations of R.A. 10754 provides for the following benefits and privileges:
RULE IV – BENEFITS AND PRIVILEGES OF PERSONS WITH DISABILITY
Section 6. Twenty Percent (20%) Discount and Value Added Tax (VAT) Exemption – Persons with disability shall be entitled to the grant of 20% discount and VAT-exemption on the purchase of certain goods and services from all establishments for their exclusive use, enjoyment or availment; Provided, however, that the purchase of such goods and services from sellers that are not subject to Value Added Tax (VAT) shall be subject to the applicable percentage tax.
For this purpose, subsequent purchases by persons with disability on the same day from the same establishments shall still be subjected to 20% discount and VAT-exemption.
All establishments shall place signages in conspicuous areas within their premises to inform persons with disabilities that they are entitled to the 20% discount and VAT-exemption.
The Department of Finance thru the Bureau of Internal Revenue shall issue the corresponding Revenue Regulations and/or Revenue Memorandum Circulars related to the grant of the 20% discount and VAT-exemption for persons with disability.
The Department of the Interior and Local Government shall also ensure that all local government units are informed about the law for the smooth implementation of the 20% discount and VAT-exemption for persons with disability in their areas of jurisdiction.
Section 6.1 Lodging Establishments – This shall apply to room accommodation and other amenities offered by the establishment such as but not limited to massage parlor, sauna bath, food, drinks and other services offered. The said discount and exemption will only apply to persons with disability.
The Department of Tourism shall issue the corresponding guidelines, circulars or directives related to this section for its accredited lodging establishments and disseminate such information to all concerned.
The concerned academic institutions shall also ensure that dormitories under their jurisdiction grant the 20% discount and VAT-exemption to students with disabilities.
Section 6.2 Restaurants – This shall apply to the purchase of food, drinks, beverages, dessert and other consumable items served by the establishments including value meals and other similar food counters, fast food, cooked food and short orders including take outs. To safeguard the establishments from abuse of this privilege, the orders should be limited only to the consumption of the concerned person with disability.
Section 6.3 Recreation Centers – This shall apply to admission fees of persons with disability charged by theaters, cinema houses, concert halls, circuses, carnivals and other places of culture and leisure. The said discount and exemption shall also apply to charges in the utilization of services including rentals of facilities and equipment and other accessories and gadgets to be used, enjoyed or availed by persons with disability in these centers.
The Department of Tourism shall issue the corresponding guidelines, circulars or directives related to Sections 6.2 and 6.3 for its accredited restaurants and recreation centers and disseminate such information to all concerned.
The Local Government Units concerned, in coordination with the Leagues of Cities and Municipalities, shall also ensure that restaurants and recreation centers under their jurisdiction are compliant to the law by including the grant of 20% discount and VAT-exemption to persons with disability as part of the terms and conditions in the issuance of business permits to the aforementioned establishments.
Section 6.4 Purchase of Medicines and Foods for Special Medical Purposes – This shall apply to the purchase of prescribed generic and branded drugs / medicines as well as foods for special medical purposes in all drugstores for the exclusive use or availment of persons with disability.
The Department of Health, in coordination with the Philippine Health Insurance Corporation and Food and Drug Administration, shall issue the corresponding guidelines, circulars or directives related to this section and disseminate such information to all concerned.
Section 6.5 Medical and Dental Services, Diagnostic and Laboratory Fees and Professional Fees of Attending Doctors – This shall apply to the availment of medical and dental services including diagnostic and laboratory fees by persons with disability in government facilities or private hospitals and medical facilities. The said discount and exemption shall also apply to the professional fees of attending doctors in such facilities.
The Department of Health, in coordination with the Philippine Health Insurance Corporation, shall issue the corresponding guidelines, circulars or directives related to this section and disseminate such information to all concerned.
Section 6.6 Domestic Air and Sea Travel – This shall cover the actual fare for domestic air and sea travel. For promotional fares, the Section on No Double Discounts should apply.
Section 6.7 Land Transportation Travel – This shall apply to actual fare for land transportation travel such as, but not limited to, public utility buses or jeepneys, taxis, Asian Utility Vehicles (AUVs), shuttle services, public railways including Light Rail Transit, Metro Rail Transit and Philippine National Railways and Transportation Network Vehicle Services (TNVS) such as Grab, Uber and the like.
The Department of Transportation including those agencies attached and under its administrative supervision and control shall issue the corresponding guidelines, circulars or directives related to domestic air, sea and land transportation travel and disseminate such information to all concerned.
The Local Government Units concerned, in coordination with the Leagues of Cities and Municipalities, shall also ensure the passage of local ordinance to enjoin transport groups to grant this benefit/privilege.
Further, land transport groups shall place signages within public utility vehicles, shuttle services and public railways to inform persons with disability that they are entitled to the benefit/privilege.
Section 6.8 Funeral and Burial Services for the Death of a Person with Disability – The beneficiary or any person who shall shoulder the funeral and burial expenses of the deceased person with disability, shall claim the discount under this rule for the deceased person with disability upon presentation of the death certificate and person with disability identification card (ID) or in its absence, the original or certified true copy of the proof of registration from the issuing local government unit. Such expenses shall cover the purchase of casket, urn, embalming, hospital morgue, transport of the body to intended burial site in the place of origin, but shall exclude obituary publication and the cost of the memorial lot.
The Local Government Units concerned, in coordination with the Leagues of Cities and Municipalities, shall ensure that mortuaries under their jurisdiction are compliant to the law by including the grant of 20% discount and VAT-exemption to persons with disability as part of the terms and conditions in the issuance of business permits to the aforementioned establishments.
Section 7. Educational Assistance for Persons with Disabilities – Educational assistance shall be granted to persons with disability to pursue primary, secondary, tertiary, post tertiary as well as vocational or technical education in both public and private schools and authorized technical vocational institutions through the provision of scholarships, grants, financial aid, subsidies and other incentives to qualified persons with disability, including support for books, learning materials and uniform allowance to the extent feasible: Provided, that persons with disability shall meet minimum admission requirements set by the Department of Education, Commission on Higher Education and Technical Education and Skills Development Authority and the Unified Student Financial Assistance System for Tertiary Education (UniFAST) Board for persons with disability who wish to pursue tertiary education by means of scholarships, grants-in-aid and student loans.
The DepEd, CHED and TESDA shall also ensure that all public and private schools, colleges and universities are informed about the provision on educational assistance for persons with disabilities.
For the purpose of this section and in view of Republic Act No. 10533 or the Enhanced Basic Education Act of 2013, primary education shall include kindergarten whether in private or public schools. (IRR of R.A. No. 10754)
May the benefits of a Senior Citizen and a Person with Disability be availed together?
The law says:
Section 12. No Double Discounts – In the purchase of goods and services which are on promotional discount, persons with disability can avail of the establishment’s offered discount or the 20% discount provided herein, whichever is higher and more favorable. In cases where the person with disability is also a senior citizen entitled to a 20% discount under his/her valid senior citizen identification card (ID), the person with disability shall use either his/her PWD ID Card or Senior Citizen ID card to avail of the 20% discount. (Section 12, IRR of R.A. No. 10754)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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