A HOUSE of Representatives inquiry has compelled popular coffee chain Starbucks to remove the cap imposed on the legally entitled 20-percent discount for senior citizens and persons with disabilities (PWDs), while other establishments have been cautioned against failing to follow the law.
A House Committee on Ways and Means hearing ordered by Speaker Ferdinand Martin G. Romualdez prompted Starbucks to lift the cap it had imposed on the 20-percent discount that senior citizens and persons with disabilities (PWDs) are legally entitled to.
Angela Cole, the Operations Director of Starbucks Coffee, made this announcement during a hearing of the House Committee on Ways and Means.
Cole acknowledged the company’s “mistake” and said they have initiated the “immediate removal of the erroneous signage” that restricted the legally mandated discount to “one food item” and “one beverage.”
The committee hearing, chaired by Albay Rep. Joey Sarte Salceda, addressed gaps in the implementation of laws related to discounts, privileges, and benefits for senior citizens, PWDs, and solo parents.
Romualdez, the principal author of the law expanding benefits for seniors and PWDs, initiated the inquiry in response to complaints about establishments failing to comply with relevant laws. Starbucks’ limitation of the 20-percent discount was one such complaint that prompted the inquiry.
In addition to Starbucks, Salceda cited another complaint against Goldilocks, a bakery products chain, allegedly limiting the 20-percent discount “to one slice for every cake.”
Salceda asserted, “We will look into this as well.”
The committee also took note of a case against Marco Polo Hotel-Pasig, where the Pasig Prosecutor’s Office filed charges against the establishment for failing to grant a senior citizen the mandated discount.
Election lawyer Romulo Macalintal, the complainant’s counsel, indicated that arrest warrants were anticipated to be issued promptly.
Salceda emphasized the need for universal application of these laws, extending discounts to various sectors, including online sellers and airline companies.
Macalintal proposed the restoration of previous discounts for senior citizens and PWDs using expressways and skyways.
Salceda said his committee would recommend remedial legislation or regulation to address gaps and confusion in the implementation of laws on discounts, privileges, and benefits for senior citizens, PWDs, and solo parents.
“The Speaker wants us to scrutinize compliance with these laws by business establishments and service providers and ensure their proper and effective implementation,” Salceda said.
Fully honor
The National Commission of Senior Citizens (NCSC) and the National Council on Disability Affairs (NCDA), as the primary agencies overseeing the concerns of senior citizens and persons with disabilities, jointly call upon establishments to fully honor the benefits and privileges granted to these groups under the Expanded Senior Citizens Act of 2010 (Republic Act No. 9994) and An Act Expanding the Benefits and Privileges of Persons with Disability (Republic Act No. 10754).
Both laws extend a common benefit, offering senior citizens and persons with disabilities a 20-percent discount and VAT exemption on specific goods and services.
Both NCSC and NCDA said they have been addressing complaints concerning alleged violations, encompassing issues ranging from the complete denial of discounts to restrictions on their utilization.
The IRR of RA 10754 explicitly states that “subsequent purchases by persons with a disability on the same day from the same establishments shall still be subjected to a 20-percent discount and VAT exemption.” Both IRRs clarify that in cases of conflict or ambiguity, the rules should be liberally construed in favor of senior citizens or persons with disabilities.
The NCSC and NCDA emphasized that, in accordance with RA 9994, RA 10754, and their respective IRRs, senior citizens and persons with disabilities are entitled to the 20-percent discount and VAT exemption without limitations beyond what the laws and rules prescribe. As an illustrative example, there is no justification for establishments to restrict the application of the discount to only one item.
The NCSC and NCDA reminded establishments that both RA 9994 and RA 10754 provide tax incentives related to the discounts granted under these laws. The call is for establishments to adhere to the legal framework and ensure that senior citizens and persons with disabilities enjoy their entitled benefits without unwarranted limitations.
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