Following the publication of the implementing rules and regulations (IRR) of Republic Act (RA) 10754, or an Act Expanding the Benefits and Privileges of Persons With Disability (PWDs), the Department of Social Welfare and Development (DSWD) said PWDs can start enjoying the value-added tax (VAT) exemption in the purchase of certain goods and services on December 23.
Social Welfare Secretary Judy M. Taguiwalo and former Lakas Rep. Martin Romualdez of Leyte, principal author of the law, said the RA 10754 would accord PWDs the same privilege being enjoyed by senior citizens.
This is on top of the 20-percent discount they are already entitled to under RA9442, also known as An Act Amending RA 7277, or the Magna Carta for Disabled Persons, and for Other Purposes.
According to Romualdez, at least 1.5 million PWDs will be exempted from the payment of 12-percent VAT on certain goods and services.
“Our task now is to ensure and guarantee that all beneficiaries will fully enjoy the assistance that the law has been offering. We will make sure that all provisions are strictly followed,” Romualdez said.
On the other hand, Taguiwalo said “this [law] will answer the wishes and aspirations of our kababayan in the sector. The grant of the 20-percent discount and VAT exemption is a big help for them and their family.”
The RA 10754 granting VAT exemption benefits to PWDs was signed on March 24 by former President Benigno S. Aquino III.
Under the law, the VAT exemption shall apply on the purchase of certain goods and services from all establishment for the exclusive use, enjoyment or availment of PWDs: lodging establishments, restaurants, recreation centers, purchase of medicines and foods for special medical purposes, medical and dental services, diagnostic and laboratory fees and professional fees of attending doctors, domestic air and sea travel, land transportation travel, funeral and burial services for the death of a person with disability.
The law also includes from VAT exemptions foods for special medical purpose, which are intended for the exclusive or partial feeding of patients with limited or impaired capacity to take, digest, absorb or metabolize ordinary foodstuffs or certain nutrients contained therein, among others.
It includes vitamins and minerals in the definition of drug/medicine, provided that these are in accordance with the Food and Drug Administration’s prevailing cut off. For herbs, level and amounts, as well as registration status, is required when indicated for therapeutic use.
The law also provides the reiteration of the rights of PWDs to educational assistance, social insurance, such as Government Service Insurance System, Social Security System, Pag-Ibig, special discount in the purchase of basic necessities and prime commodities and express lanes in all commercial and government establishments
It also allows a relative of a PWD up to the fourth civil degree of consanguinity or affinity to claim a tax deduction of P25,000 yearly.
The law is also applicable to Filipinos who hold foreign passport, but are registered as dual citizens and Filipinos who have reacquired their Filipino citizenship through RA 9255, or the Citizenship Retention and Reacquisition of 2003.
1 comment
Is it tax exception our senior & pwd kindly explain more what Republic Act. Po thanks.
Michael M.Garcia