REVIVE TAX EXEMPTION FOR SENIOR CITIZENS--ANGARA

Senator Edgardo J. Angara urged the amendment of existing laws to exempt senior citizens from the value-added tax in goods and services. SB 65 seeks to extend the Expanded Senior Citizens Act of 2003 and reinstate senior citizens' discount overwritten by succeeding value-added tax laws.

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

But with the passing of the 2005 EVAT Law (RA9337), all goods and services carry an additional 10% on their gross price; and later in 2006 the President decreed an increase of the EVAT to 12%. Consequently, senior citizens only enjoy discounts at 8% out of the mandated 20%. 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 correct this inconsistency by exempting senior citizens from EVAT, thereby giving them back the 20% 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," noted Angara, Chair of the Senate Committee on Finance.