Angara wants full 20 percent discount to elderly returned

Published by rudy Date posted on November 9, 2009

As Congress enters its last remaining weeks before the next round of elections, when it resumes sessions this week, a senator is pushing the enactment of a law effectively lifting senior citizens from value-added tax in goods and services.

Sen. Edgardo Angara is calling on colleagues to consider his proposed legislation amending the Expanded Senior Citizens Act of 2003.

Senate Bill 65 reinstates senior citizens’ discount overwritten by succeeding value-added tax laws.

In 1992, Angara authored and sponsored the Senior Citizens Law granting a 20 percent discount on their purchase of goods and services, medical and dental care, transport fare, funeral and burial services, among other things.

But with the passing of the 2005 eVAT Law (Republic Act 9337), all goods and services carry an additional 10 percent on their gross price and, later in 2006, the President decreed an increase of the eVAT to 12 percent.

Consequently, senior citizens only enjoy discounts at 8 percent out of the mandated 20 percent. This has made a huge dent in the purchasing power of senior citizens and caused a decrease in spending by the elderly and their families.

This new bill seeks to correct this inconsistency by exempting senior citizens from eVAT, thereby giving them back the 20 percent discount intended for them.

“Let us continue to motivate and encourage our elderly to contribute to nation building, to encourage their families and other communities to reaffirm their tradition of caring for the elderly,” said Angara, chairman of the Senate committee on finance. –Angie M. Rosales, Daily Tribune

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