MANILA — Senator Mark Villar has introduced a new legislative measure seeking to grant businesses tax credits for mandatory discounts extended to senior citizens and persons with disabilities (PWDs), aiming to ease the financial pressure on commercial establishments implementing these welfare programs.
Senate Bill No. 2494, titled the proposed “Tax Credit for Senior Citizens and Persons with Disability Discount Act,” looks to amend Republic Act No. 9994 (Expanded Senior Citizens Act of 2010) and Republic Act No. 7277 (Magna Carta for Persons with Disability).
Under the proposed framework, business establishments would be permitted to subtract the total cost of mandatory customer discounts directly from their national internal revenue tax liabilities via tax credits, replacing the current system where such discounts are treated merely as tax deductions.
Proponents noted that the existing deduction scheme often leaves businesses—particularly micro, small, and medium enterprises (MSMEs)—unable to fully recover the expenses incurred from mandated price reductions.
Explaining the rationale behind the measure, Villar emphasized the importance of balancing social welfare with commercial viability.
“Ang pagbibigay ng diskwento sa ating mga senior citizen at persons with disabilities ay mahalagang bahagi ng ating social protection programs. Ngunit hindi dapat iasa lamang sa mga negosyo ang buong bigat ng pagpapatupad ng mga benepisyong ito,” he said.
”Kailangan nating magkaroon ng mas patas na sistema na nangangalaga sa ating mga benepisyaryo habang tinutulungan din ang ating mga negosyo, lalo na ang mga MSME, na manatiling matatag at makapagpatuloy sa kanilang operasyon,” he added.
Key provisions of the bill dictate that tax credits generated from senior citizen discounts may be carried over into subsequent taxable years, though they remain non-refundable and non-transferable to other entities.
Meanwhile, the current tax deduction setup for the minimum five percent discount on utility consumption—specifically water and electricity for senior citizens—will remain unchanged.
Villar stressed that the bill’s ultimate goal is to safeguard the privileges of vulnerable sectors while establishing a more equitable system for enterprises.
“Ang layunin natin ay matiyak na patuloy na matatanggap ng ating mga senior citizen at PWDs ang mga benepisyong nararapat sa kanila, habang binibigyan din natin ng mas patas na sistema ang mga negosyong nagpapatupad ng mga diskwentong ito,” Villar said.
“Sa ganitong paraan, napangangalagaan natin ang kapakanan ng ating mga kababayan at napapatibay ang ating mga negosyo bilang katuwang sa pag-unlad ng bansa,” he added.