Seniors could be fined for abusing discount

MANILA, Philippines - Senior citizens found to be abusing the privileges granted to them under the Expanded Senior Citizens Law could be imprisoned for a minimum of six months and fined up to P100,000.                                                                   

In a press briefing yesterday, Social Welfare Secretary Corazon Soliman said only senior citizens should benefit from the goods or services they purchase.                 

“If they eat in a restaurant as a group, only the food purchased by the senior citizen will be subject to 20 percent discount,” she said. “Take-outs and deliveries are also included as long as senior citizens are the ones who will pay for and benefit from it.”                                                         

Soliman said the senior citizen card should not be used to get discounts on medicine for the relatives of senior citizens. Republic Act 9994 or the Expanded Senior Citizens Act, which took effect last Tuesday, exempts senior citizens from the value-added tax (VAT). It grants a 20-percent discount on purchases of food, medicine, as well as other services in restaurants and movie houses.                                                

Any person who refuses to honor the card in their establishment may be imprisoned for a year and fined up to P100,000. Repeat offenders may be imprisoned between two to six years and fined P200,000.

Senior citizens have only been able to enjoy eight percent of the supposed 20-percent discount because of the VAT.     By December this year, senior citizens will also get a five-percent discount on their electric and water bills, provided that the meters for these utilities are registered under their names and consumption is below 100 kilowatthours for electricity and 30 cubic meters for water.            

Energy Regulatory Commission (ERC) executive director Francis Saturnino said they are now formulating the supplemental guidelines on cost recovery once the discount for senior citizens is implemented.

Meralco external communications head Joe Zaldarriaga said they are waiting for clarification on rate issues from the ERC before they can implement the discount.                                 

“On the part of Meralco, we will actively participate in developing guidelines and processes that would be simple for consumers, while ensuring that the benefits of the Expanded Senior Citizens Act are received by the intended beneficiaries,” Zaldarriaga said. – With Donnabelle Gatdula