MANILA — Department of Social Welfare and Development (DSWD) Officer-in-Charge Luwalhati F. Pablo clarified that senior citizens continue to enjoy the 20 percent discount despite the addition of the 12 percent Expanded Value Added Tax (E-VAT) on their purchases of basic commodities and services.
Based on Section 10 of the Revenue Regulations No. 1-2007 issued by the Department of Finance through the Bureau of Internal Revenue (BIR), the computation is as follows:
Amount of Sale (without VAT) – P100.00
Less: 20 percent sales discount – P 20.00
Valuable Sale – P 80.00
Plus: 12 percent VAT (based on P80) – P 9.60
Total amount to be paid by the senior citizen – P 89.60
Pablo said that the 20 percent discount is removed first before the 12 percent E-VAT is added unto the first amount to be paid by the senior citizens.
The OIC-Secretary encourages all senior citizens to refer to this simple computation on how their 20-percent discount privilege is computed vis-?-vis the 12 percent E-VAT.
“We are illustrating the computation to avoid further confusion among our senior citizens,” she explained.
Pablo added that at present, there is a clamor from senior citizens groups for a reconsideration of the basis of the computation but Revenue Regulations No. 1-2007 remains effective and enforceable at this time.
The 20 percent discount privilege is provided for in the Expanded Senior Citizen’s Act of 2003 or Republic Act 9257.
The Department of Social Welfare and Development chairs the National Coordinating and Monitoring Board (NCMB), an inter-agency body that oversees the implementation of RA 9257. (OPS)