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Senior citizens, PWD price discount covers SMS, online purchases -- BIR

Published May 20, 2022 08:24 am

The Bureau of Internal Revenue (BIR) asked fast food restaurants and other businesses to extend the discount privileges of senior citizens (SCs) and persons with disabilities (PWDs) on online and texting (short messaging service) purchases.

A senior citizen casts his vote at Magat Salamat Elementary School in Tondo, Manila. (Jaleen Ramos/MANILA BULLETIN)

This, as BIR noted that retail outlets nationwide usually do not apply the 20-percent discount on Internet transactions.

BIR Officer-In-Charge and Deputy Commissioner for Legal Group Marissa O. Cabreros issued Revenue Memorandum Circular 71-2020 to revenue field officials to implement the joint resolution of seven government agencies including the trade, health, social welfare departments and the BIR on the full implementation of the price discount law.

The joint resolution stipulated that SCs and PWDs should screen shot their identification card and purchase booklets as well as the medical prescription and send the same to the seller to avail of the discount.

When the items ordered are delivered, the IDs and purchase booklets should be presented to the delivery man, or the beneficiaries will pay the full amount.

A member of this sector is granted 20-percent discount for purchase plus exemption from payment of value-added tax (VAT) which effective rate is eight percent, bringing total savings of the elderly and impaired individuals to 28 percent.

The price discount for basic grocery items is fixed at five percent.

Some BIR insiders expressed concern over this new discount arrangement, saying it is "disadvantageous" to both store owners and the government in terms of discounted prices and VAT collection, respectively.

They said the privilege might be abused by unqualified household members, using the discount card in ordering foods and other goods for their personal consumption.

However, others argued there are laws discouraging consumers from misrepresenting themselves.

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