The bicameral
conference committee report on the disagreeing provisions of SB
No.3561 and HB No.5987 was ratified late afternoon on Wednesday by
both the Senate and the House of Representatives.
The measure is
expected to be transmitted to Malacañang next week for the President’s
signature.
Senators had earlier
agreed for a ceasefire on fiery debates over the controversial C5
report to focus on important legislation pending before the chamber.
Cayetano, Chairperson
of the Senate Committee on Social Justice and principal sponsor of the
measure, thanked her colleagues for choosing to prioritize
ratification of the proposal.
Reacting to opinions
that the bill will result in foregone revenues for the government,
Cayetano described the lost income as a “loss that is well-lost.”
She explained that
whatever losses the government absorbs would eventually result in
increased purchasing power for our senior citizens, which will have a
positive impact on the economy in general.
During the public
hearings on the measure, the Department of Finance had estimated that
foregone revenues from VAT and income taxes for the full effective
discount of 20 percent would amount to P54.4 million in the first year
of implementation.
But Cayetano stressed:
“The limitation with the DOF’s projections is that it fails to reflect
the overall benefits to society, and the government itself, of better
healthcare and increased economic activity because the capacity of our
senior citizens to purchase medicines and other services will be
improved.”
Some salient features
of the Expanded Senior Citizens Act:
Tax exemption:
Purchases made by senior citizens will be exempted from the 12% VAT
such that the senior citizens shall enjoy their full 20% discount.
Coverage: medicines, influenza and pneumococcal vaccines, and other
medical supplies, accessories and equipment; professional fees of
attending physicians and licensed professional health workers, medical
and dental services, and diagnostic and laboratory fees; actual fare
for land transportation travel in public utility vehicles; actual
transportation fare for domestic and air transport services and sea
shipping vessels; utilization of services in hotels and similar
lodging establishments; admission fees in theaters, cinema houses,
concert halls; funeral and burial services for the death of senior
citizens.
- Sharing of burden:
The Department of Health shall establish guidelines and mechanisms of
compulsory rebates in the sharing of burden of discounts among
retailers, manufacturers and distributors, taking into consideration
their respective margins.
Health benefits.
- Free medical and
dental services, diagnostic and laboratory fees in all government
facilities;
- All indigent senior
citizens shall be covered by the National Health Insurance Program of
Philhealth; and
- The DOH shall
administer free vaccination against the influenza virus and
pneumococcal disease for indigent senior citizen patients.
Other privileges. The
grant of a minimum of five percent (5%) discount relative to the
monthly utilization of water and electricity supplied by public
utilities: Provided, That the individual meters for the foregoing
utilities are registered in the name of the senior citizen residing
residing therein: Provided, further, That the monthly consumption
does not exceed one hundred kilowatt hours (100 kWh) of electricity
and thirty cubic meters (30 m³) of water. Provided, furthermore that
the privilege is granted per household regardless of the number of
senior citizens residing therein.
Penalties. Any person
who violates any provision of this Act shall suffer the following
penalties:
- For the first
violation, imprisonment of not less than two years but not more than
six years and a fine of not less than P50,000 but not exceeding
P100,000;
- For any subsequent
violation, imprisonment of not less than two years but not more than
six years and a fine not less than P100,000 but not exceeding
P200,000;
- Any person who
abuses the privileges herein shall be punished with imprisonment of
not less than six months and a fine of not less than P50,000 but not
more than P100,000; and
- If the offender
is a corporation, partnership, organization or any similar entity, the
officials thereof directly involved such as the President, General
Manager, managing partner or such other officer charged with the
management of the business affairs shall be liable therefor.
