Discounts for the elderly

MANILA, Philippines – Since the issuance of the implementation of the rules and regulation finally exempting them from paying the 12 percent E-VAT on some products and services, senior citizens have never been in a more euphoric mood than they are today.

It means a lot to them. Their small pension could barely keep them up in their day-to-day existence. Woe even to those who do not earn a thing in their twilight years but have to depend on allowances from some family members.

Anyhow, the full implementation of RA 9995 signed by President Arroyo on February 14 this year – a mutual loving-day of sort – came as a needed boost to the country’s elderly. They are thankful to her for signing the expanded Senior Citizens’ Act.

These days we see them frequenting movie houses (even 100 percent free to them on some days in Makati and Quezon City), live entertainment shows, some specified groceries, transportation.

But the most important of all these privileges is the full discount – 32 percent in all – on the elderly’s purchase of medicines. They had waited long for this welcome relief since October last year.

But latest news item coming from the Department of Finance appears disturbing to senior citizens. The agency wants to take away the 12 percent E-VAT from the elderly, and instead increase the total discount to 30 percent. What gives?

Government announcements say it needs badly the 12 percent E-VAT exempted from the senior citizens. Something that finance experts estimate to come to around P1.8 billion a year. This amount is eyed to bolster the depleting sources of income of government to finance its operations and, of course, in underwriting various infrastructure projects.

All this the elderly understand. But P1. billion, they think, is a bit exaggerated. There are only a little more than 5 million senior citizens in the country and maybe one-third make negligible purchases under the law, for their exemption to be a threat to a diminished government income.

So, inevitably, senior citizens are suspicious of this newest proposal from the Finance Department.

Entangled into government bureaucratic milieu, the proposed 30 percent discount may be delayed in being returned to them and leave them again being deprived of the expanded discount privilege. Worse, the planned 30 percent discount may be lost in the Finance Department rigmarole of interpretations and different versions as understood by those finance wizards.

They fear the laudible objectives of RA 9995 would go to naught. –ELINANDO B. CINCO, Manila Bulletin