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SIXTEENTH CONGRESS OF THE REPUBLIC) OF THE PHILIPPINES ) Third Regular Session ) '15 AUG -5 All :11

SENATE

COMMITTEE REPORT NO 199

Submitted by the Committees on Ways and Means and Social Justice, Welfare and Rural Development on AIIG 0 ~i 2015

Re: Senate Bill No. 2890

Recommending its approval in substitution of House Bill No. 1039, and taking into consideration Senate Bill No. 2483, 2713, and 2730.

Sponsor: Senators Angara

MR. PRESIDENT:

The Committees on Ways and Means and Social Justice, Welfare and Rural

Development, to which were referred House Bill No. 1039, introduced by Reps. Ferdinand

Martin G. Romualdez, Emi G. Calixto-Rubiano, Sharon S. Garin, Arthur Defensor, Ma.

Lourdes Acosta-Alba, Nicasio Aliping Jr., Philip A. Pichay, Estrellita B. Suansing, Victoria

Isabel Noel, Magnolia Rosa Antonino-Nadres, Pablo Nava III, Mel Senen Sarmiento,

Jonathan dela Cruz, Henry Oaminal, Romero "Miro" Quimbo, Ma. Victoria Sy-Alvarado,

Emmeline Aglipay-Villar, Frederick Abueg, Karlo Alexei Nograles, Rufus Rodriguez, and

Mariano Piamonte, entitled:

"AN ACT EXEMPTING PERSONS WITH DISABILITY FROM THE VALUE ADDED TAX ON CERTAIN GOODS AND SERVICES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7277, AS AMENDED, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR DISABLED PERSONS", AND FOR OTHER PURPOSES" ·,

Senate Bill No. 2483, introduced by Senator Ralph Recto, entitled:

"AN ACT EXEMPTING PERSONS WITH DISABILITY FROM THE VALUE· ADDED TAX ON CERTAIN GOODS AND SERVICES, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7277, AS AMENDED, OTHERWISE KNOWN AS THE 'MAGNA CARTA FOR PERSONS WITH DISABILITY'"

Senate Bill No. 2713, introduced by Senator Paolo Benigno "Bam" Aquino IV and Senator Loren Legarda, entitled:

"AN ACT EXPANDING THE BENEFITS AND PRIVILEGES OF PERSONS WITH DISABILITIES, AMENDING SECTIONS 32 AND 33 OF REPUBLIC ACT NO. 7217, AS AMENDED, OTHERWISE KNOWN AS THE 'MAGNA CARTA FOR PERSONS WITH DISABILITIES' AND FOR OTHER PURPOSES"

and Senate Bill No. 2730, secondarily referred to the Committee on Social Justice, Welfare

and Development, introduced by Senator Paolo Benigno "Bam" Aquino IV, entitled:

have considered the same and have the honor to report them back to the Senate with the

recommendation that the attached bill, Senate Bill No. 289 ,q,repared by the Committees,

entitled:

"AN ACT EXPANDING THE BENEFITS AND PRIVILEGES OF PERSONS WITH DISABILITY (PWD), AMENDING FOR THIS PURPOSE SECTION 32 OF REPUBLIC ACT 7277, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR PERSONS WITH DISABILITY," AS AMENDED, AND SECTION 35 (B) OF REPUBLIC ACT 8424, OTHERWISE KNOWN AS THE "NATIONAL INTERNAL REVENUE CODE OF 1997," AS AMENDED

be approved in substitution of House Bill No. 1039 taking into consideration Senate Bill No.

2483, 2713, and 2730 with Senators Recto, Aquino IV, Legarda, Angara, and Binay as

authors thereof.

2 Respectfully submitted:

~' {// S~Y ANGARA Chairperson Chairperson Committee on Social Justice, Committee on Ways and Means Welfare & Development Member, Committee on Social Justice, Member, Committee on Ways and Means Welfare and Development ~

MIRIAM DEFENSOR SANTIAGO Vice Chairperson Committee on Ways and Means

MEMBERS:

.,-.-~~=~~~~~~;;;;~~;~~~~~~.=~==::> 13~~vJ~ kORENLEGARDA PAOLO BENIGNO "BAM' AQUINO IV Member, Committee on Ways and Means Member, Committee on Ways and Means Member, Committee on Social Justice, Member, Committee on Social Justice, Welfare and Development Welfare and Development

ANTO I "SO NY" F1ILL~NE;IV FRANCIS "CHIZ"G. ESCUDERO Member, Comm ee on ays and Means Member, Committee on Ways and Means

AQUILINO "KOKO" PIMENTEL III RAMON BONG REVILLA, JR. Member, Committee on Ways and Means Member, Committee on Ways and Means

~L.ITO" M. PID PIA S. CAYETANO Member, Committee on waysi Means Member, Committee on Ways and Means

3 GRACE POE ittee on Ways and Means Member, Committee on Social Justice, Welfare and Development

oh:-' JOSEPH ~TOR G. EJERCITO GREGORIO B. HONASAN II Member, Committee on Ways and Means Member, Committee on Ways and Means Member, Committee on Social Justice, Welfare and Development

;(}~vv SEIoI~ R. OSMENA III Member, Committee on Social Justice, Welfare and Development

EX-OFFICIO MEMBERS:

JUAN PONCE ENRILE l VICEN E C. SOTTO III Minority Leader Acting inority Leader Member, Committee on Ways and Means Member, Committ e on Ways and Means Member, Committee on Social Justice, Welfare and Development

ALAN PETER "COMPANERO" S. CAYETANO Majority Leader Member, Committee on Ways and Means Member, Committee on Social Justice, Welfare and Development

Presid nt Pr. - empore Member, Com itte on Ways and Means Member, Committee on Socia Justice, Welfare and Development

Honorable FRANKLIN M. DRILON Senate President

4 SIXTEENTH CONGRESS OF THE REPUBLIC ) OF THE PHILIPPINES ) Third Regular Session ) "15 AUG -5 All :12 SENATI;,. S. No. -.2~90 HECEIVED lH':--6~

(In substitution of H. No.1 039, taking into consideration S.B. No. 2483, 2713 and 2730)

Prepared by the Committees on Ways and Means, and Social Justice, Welfare and Rural Development with Senators Recto, Aquino IV, Legarda, Angara and Binay as authors thereof

AN ACT EXPANDING THE BENEFITS AND PRIVILEGES OF PERSONS WITH DISABILITY (PWD), AMENDING FOR THIS PURPOSE SECTION 32 OF REPUBLIC ACT 7277, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR PERSONS WITH DISABILITY," AS AMENDED, AND SECTION 35 (B) OF REPUBLIC ACT 8424, OTHERWISE KNOWN AS THE "NATIONAL INTERNAL REVENUE CODE OF 1997," AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

1 SECTION 1. Section 32 of Republic Act No. 7277, otherwise known as the "Magna

2 Carta for Persons with Disability," as amended, is hereby further amended to read as

3 follows:

4 "SEC. 32. Persons with disability shall be entitled to:

5 "(a) At least twenty percent (20%) discount AND EXEMPTION FROM THE

6 VALUE-ADDED TAX (VAT), IF APPLICABLE, ON THE SALE OF GOODS

7 AND SERVICES [from all establishments,] FOR THE EXCLUSIVE USE AND

8 ENJOYMENT OR AVAILMENT OF THE PWD, SUCH AS:

9 (1) ON THE FEES AND CHARGES relative to the utilization of all , 10 Services in hotels and similar lodging establishments; restaurants

11 and recreation centers [for the exclusive use or enjoyment of

12 persons with disability];

13 (2) [(b) A minimum of twenty percent (20%) discount on] ON

14 admission fees charged by [the] theaters, cinema houses, concert

15 halls, circuses, carnivals and other similar places of culture, leisure

1 "

1 and amusement [for the exclusive use or enjoyment of persons

2 with disability];

3 (3) ["(c) At least twenty percent (20%) discount for] ON the purchase

4 of medicines in all drugstores [for the exclusive use or enjoyment

5 of persons with disability];

6 (4) ["(d) At least twenty percent (20%) discount on] ON medical and

7 dental services including diagnostic and laboratory fees such as,

8 but not limited to x-rays, computerized tomography scans and

9 blood tests, AND PROFESSIONAL FEES OF ATTENDING

10 DOCTORS in all government facilities, subject to guidelines to be

11 issued by the Department of Health (DOH), in coordination with the

12 Philippine Health Insurance Corporation (PHILHEAL TH);

13 (5) ["(e) At least twenty percent (20%) discount on] ON medical and

14 dental services including diagnostic and laboratory fees, and

15 professional fees of attending doctors in all private hospitals and

16 medical facilities, in accordance with the rules and regulations to

17 be issued by the DOH, in coordination with the PHILHEAL TH;

18 (6) ["(f) At least twenty percent (20%) discount on] ON fare for

19 domestic air and sea travel [for the exclusive use or enjoyment of

20 persons with disability];

21 (7) ON ACTUAL FARE FOR LAND TRANSPORTATION TRAVEL

22 SUCH AS, BUT NOT LIMITED TO, PUBLIC UTILITY BUSES OR

23 JEEPNEYS (PUB/PUJ), TAXIS, ASIAN UTILITY VEHICLES

24 (AUV), SHUTTLE SERVICES AND PUBLIC RAILWAYS,

25 INCLUDING LIGHT RAIL TRANSIT (LRT), MASS RAIL TRANSIT

26 (MRT) AND PHILIPPINE NATIONAL RAILWAYS (PNR) ["(g) At

27 least twenty percent (20%) discount in public railways, skyways

28 and bus fare for the exclusive 'use and enjoyment of persons with

29 disability;].

2 1 "(8[h)) Educational assistance to persons with disability, for them to pursue

2 primary, secondary, tertiary, post tertiary, as well as vocational or technical

3 education, in both public and private schools, through the provision of

4 scholarships, grants, financial aids, subsidies and other incentives to qualified

5 persons with disability, including support for books, learning materials, and

6 uniform allowance to the extent feasible: Provided, That persons with

7 disability shall meet minimum admission requirements;

8 "(C[i)) To the extent practicable and feasible, the continuance of the same

9 benefits and privileges given by the Government Service Insurance System

10 (GSIS), Social Security System (SSS), and PAG-IBIG, as the case may be,

11 as are enjoyed by those in actual service;

12 "(DU)) To the extent possible, the government may grant special discounts in

13 special programs for persons with disability on purchase of basic

14 commodities, subject to guidelines to be issued for the purpose by the

15 Department of Trade and Industry (DTI) and the Department of Agriculture

16 (DA); and

17 "(E[k)) Provision of express lanes for persons with disability in all commercial

18 and government establishments; in the absence thereof, priority shall be

19 given to them.

20 "The abovementioned privileges are available only to persons with disability

21 who are Filipino citizens upon submission of any of the following as proof of

22 his/her entitlement thereto:

23 "(I) An identification card issued by the city or municipal mayor or the

24 barangay captain of the place where the person with disability resides;

25 "(II) The passport of the persons with disability concerned; or

26 "(III) Transportation discount fare Identification Card (10) issued by the

27 National Council for the Welfare of Disabled Persons (NCWDP).

3 , " r

1 "The privileges may not be claimed if the person with disability claims a

2 higher discount as may be granted by the commercial establishment and/or

3 under other existing laws or in combination with other discount program/so

4 "The establishments may claim the discounts granted in sub-section (a)

5 PARAGRAPHS (1), (2), (3), (5), (6), AND (7) [(b), (c), (e), (f) and (g)] as tax

6 deductions based on the net cost of the goods sold or services rendered:

7 Provided, however, That the cost of the discount shall be allowed as

8 deduction from gross income for the same taxable year that the discount is

9 granted: Provided, further, That the total amount of the claimed tax deduction

10 net of value-added tax if applicable, shall be included in their gross sales

11 receipts for tax purposes and shall he subject to proper documentation and to

12 the provisions of the National Internal Revenue Code (NIRC), as amended."

13 SEC. 2. Section 35 (B) of Republic Act No. 8424, otherwise known as the "National

14 Internal Revenue Code of 1997," as amended, is hereby further amended to read as

15 follows:

16 "SEC. 35. Allowance of Personal Exemption for Individual Taxpayer. -

17 "(A) x x x

18 "(B) Additional Exemption for Dependents. - There shall be allowed an

19 additional exemption of Twenty-five thousand pesos (25,000) for each

20 dependent not exceeding four (4).

21 "The additional exemption for dependents shall be claimed by only one of the

22 spouses in the case of married individuals.

23 "In the case of legally separated spouses, additional exemptions may be

24 claimed only by the spouse who has custody of the child or children:

25 Provided, That the total amount of additional exemptions that may be claimed

26 by both shall not exceed the maximum additional exemptions herein allowed.

27 "For purposes of this Subsection, a "dependent" means a legitimate,

28 illegitimate or legally adopted child chiefly dependent upon and living with the

4 " '

1 taxpayer if such dependent is not more than twenty-one (21) years of age,

2 unmarried and not gainfully employed [or if such dependent, regardless of

3 age, is incapable of self-support because of mental or physical defect),

4 PROVIDED, THAT PERSONS WITH DISABILITY (PWD), AS DEFINED IN

5 RA NO. 7277, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR

6 PERSONS WITH DISABILITY," AS AMENDED, REGARDLESS OF AGE,

7 WHO ARE NOT GAINFULLY EMPLOYED AND CHIEFLY DEPENDENT

8 UPON AND LIVING WITH THE TAXPAYER SHALL LIKEWISE BE

9 TREATED AS DEPENDENT.

10 "X X X.II

11 SEC. 3. Implementing Rules and Regulations. - The Department of Social Welfare

12 and Development (DSWD), Department of Health (DOH), Department of Finance (DOF),

13 and the National Council on Disability Affairs (NCDA), in consultation with the concerned

14 Senate and House committees, and other agencies, organizations and establishments,

15 shall promulgate the necessary rules and regulations for the effective implementation of the

16 provisions of this Act. Provided, That the failure of the concerned agencies to promulgate

17 the said rules and regulations shall not prevent the implementation of this Act upon its

18 effectivity.

19 SEC. 4. Separability Clause. - If any provision of this Act is declared invalid or

20 unconstitutional, other provisions hereof which are not affected thereby shall remain in full

21 force and effect.

22 SEC. 5. Repealing Clause. - All laws, orders, decrees, rules and regulations, and

23 other parts thereof inconsistent with the provisions of this Act are hereby repealed,

24 amended or modified accordingly.

25 SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication

26 in at least two (2) newspapers of general circulation,

27 Approved,