Romualdez seeks VAT exemption for PWDs

Leyte Rep. Ferdinand Martin Romualdez INQUIRER FILE PHOTO

A modern-day Apolinario Mabini who could use a new wheelchair would be entitled to a full 20-percent discount.

That is, if Congress passes a measure that exempts persons with disabilities (PWDs) from the 12-percent value-added tax (VAT). The privilege is on top of the 20-percent discount they already enjoy.

Congress is just a few steps away from passing the proposal that gives PWDs the same discount for goods and services accorded by law to senior citizens.

Leyte Rep. Ferdinand Martin Romualdez, one of the proponents, has asked his colleagues in the House of Representatives and the Senate to take bicameral action on his pet bill, which seeks to amend the Magna Carta for PWDs, or Republic Act No. 7277, as amended.

Both chambers have already passed their versions of the bill on third reading and a bicameral conference is needed to approve a final version that will be ratified by both Houses and signed into law by the President.

The House passed Romualdez’s bill, House Bill No. 1039, in December 2014, while the Senate approved Senate Bill No. 2890, authored by Sen. Ralph Recto, last month.

Like senior citizens, PWDs are entitled to a 20-percent discount on goods and services in hospitals, buses and trains, cinemas, hotels and restaurants. However, they are not exempt from the VAT.

“This is an equalizing measure because this will accord PWDs exactly the same privilege enjoyed by senior citizens, who are exempted from the VAT by virtue of Republic Act No. 9994,” Romualdez said.

By way of example, he said, senior citizens enjoy a P20 discount for every P100 worth of goods and services.

“On the other hand, PWDs effectively enjoy only a P12 discount for every P100 worth of good or service because the law does not exempt them from VAT, which is imposed on the net value of the good or service or 10 percent of the P80 after deducting P20,” Romualdez said.