The Philippine Online Chronicles

A bill exempting senior citizens from the 12 percent value added tax (VAT) was approved by the Senate yesterday.

The newly-passed Expanded Senior Citizens Act, or Senate Bill 3561, aims to lift the burden of VAT among senior citizen consumers nationwide and enable senior citizens to “fully avail of the 20 percent senior citizens discount that was originally envisioned for them under the Senior Citizens Act (Republic Act 7342),” according to the bill's principal sponsor Senator Pia Cayetano.

Additionally, the bill will mandate the Department of Health and the Department of Social Welfare and Development to provide “free vaccination against influenza virus pneumococcal disease,” “death benefit assistance of P2,000,” “monthly stipend amounting to P1,500,” “the establishment of a 'senior citizens ward' in every government hospital,” and “the coverage of indigent senior citizens by the National Health Insurance Program or Philhealth” for “indigent” senior citizens, which will be identified by both agencies.

"This is good news for our senior citizens who have been clamoring for the passage of this measure," said Cayetano, chairperson of the Senate Committee on Social Justice, on GMAnews.tv.

Since the approval of the 12 percent Revitalized VAT into law in 2005, the 20 percent discount on goods and services purchased by senior citizens was reduced to eight percent.

“Our senior citizens deserve better treatment, and passing this bill will enable them to enjoy, among others, additional discounts for medicines and other much needed supplies,” Senate President Juan Ponce Enrile said on Philstar.com.

Solons urged to pass pending bills

With nine days left before the end of session of the 14^th Congress, Enrile urged fellow legislators to immediately pass pending bills, especially the Electricity Rate Reduction Act (ERRA) of 2009 and the Anti-Trust Act of the Philippines, both of which were authored by Enrile.

ERRA aims to “ultimately lower electricity rates” by reducing government shares on indigenous energy sources by three percent.

The bill was subsequently opposed by Finance Secretary Margarito Teves and the Alliance of Geothermal Energy-Producing Local Government Units (LGU), saying that the bill will “lower” government revenues and “nullify” the benefits of indigenous energy revenues to the LGUs. However, Enrile countered in Manilatimes.net that ERRA will “cure the 'anomalous' situation where energy produced from indigenous sources is more costly than imported coal.”

Meanwhile, the Anti-Trust Act aims to abate monopolies and price manipulation of “big businesses” by providing measures that will penalize “all forms of artificial machinations that will injure, destroy, or prevent free market competition.”

“We need an Anti-Trust law that will maintain and enhance free and full competition in trade [and] industry,” Enrile said.

Enrile added that 13 other bills are being rushed by the Senate to be approved by the end of the session.