GMA signs law expanding benefits for elderly

MANILA, Philippines - President Arroyo has signed into law Republic Act 9994 or the Expanded Senior Citizens Act, ending weeks of speculation on whether or not she would act on this measure.

Deputy presidential spokesman Gary Olivar, quoting Executive Secretary Eduardo Ermita, said that the President received the enrolled copy of the bill last Monday night.

Mrs. Arroyo apparently did not have to scrutinize the bill too much since she signed it yesterday morning before going on her tour of the Mindanao agribusiness super region.

There were speculations the President did not want to act on the bill because of its revenue implications as indicated by the Department of Finance (DOF), which recommended that Mrs. Arroyo veto the bill.

According to the DOF, the law would result in a revenue loss of P1.68 billion for the government and complicate the administration of the value added tax (VAT).

However, in spite of the DOF’s recommendation, the President said two weeks ago that she would not veto the measure.

“With the signing of the expanded senior citizens’ benefits act, our elderly can now expect additional financial assistance to help them weather the uncertainties of old age in an uncertain global economy,” Olivar said.

Olivar noted that the President was fully aware of the fiscal costs of the measure but she wanted to provide sectors such as the senior citizens with the social services and safety net programs “that have been created precisely to spread the benefits of our fiscal recovery to the neediest of our citizens.”

“The President intends to continue looking after the most vulnerable members of society as she continues to protect the economic gains in her legacy,” he said.

The law would exempt senior citizens from the 12 percent value added tax imposed on goods and services.

While the original senior citizens act, Republic Act 7342, gave the elderly a 20 percent discount on goods and services, they were not exempted from the VAT, which effectively brought down the level of discount to only eight percent.

Now that the law has been amended, senior citizens would be able to enjoy the full 20 percent discount.

The VAT exemption will apply to medicine and essential medical supplies, accessories and equipment; fees of attending physicians; medical, dental and diagnostic and laboratory fees; fares for buses, jeepneys, taxis, AUVs, shuttle services, public railways, domestic air transport and other vessels; utilization of services in hotels, restaurants and similar establishments; admission fees in cinemas, theaters and other places of culture, leisure and amusement; and funeral and burial services.

Indigent senior citizens will also be given a monthly stipend of P500, subject to the periodic review of Congress in coordination with the Department of Social Welfare and Development.

In case of death of an indigent senior citizen, an amount of P2,000 will be awarded to his or her nearest kin as death benefit assistance.

Senior citizens may also enjoy a five percent discount on their water and electric bills on the condition that the utilities are in the name of the senior citizen residing in the household, and that the consumption for electricity and water does not exceed 100 kilowatt-hours and 30 cubic meters per month, respectively.

Establishments that refuse to grant the mandated benefits, including their owners, managers and personnel may be fined P10,000 to P50,000 or face imprisonment of one to six months .

Sen. Pia Cayetano, principal author of the expanded Senior Citizens Act, welcomed the President’s move to sign the law.

“As principal author of the Expanded Senior Citizens Act, I wish to express the gratitude of the country’s six million lolos and lolas to the President for finally acknowledging the urgency to sign this measure,” said Cayetano, who is seeking re-election under the Nacionalista Party.

Meantime, last Feb. 12, the President signed the Coast Guard Law of 2009 or Republic Act 9993, formally transferring the Philippine Coast Guard (PCG) from the Department of National Defense (DND) to the Department of Transportation and Communication (DOTC). – With Christina Mendez, Evelyn Macairan