Camarines Sur 2nd district Rep. LRay Villafuerte says solo parents may enjoy a 10 percent discount and value-added tax (VAT) exemption on their purchases of essentials such as baby’s milk, diapers, and doctor-prescribed medicines for their young kids very soon. Villafuerte, who is one of the lead authors of Republic At (RA) No. 11861 or “The Expanded Solo Parents Welfare Act”, said that the Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) No. 1-2023 on the implementation of the tax privileges to be accorded establishments that will grant the 10 percent discount and VAT-exemption to qualified single parents on their purchases of goods for their babies, toddlers, and preschoolers that are listed under the law. However, he noted that this hefty price discount under the law can be availed of only by solo parents earning P250,000 each or below per year—the same income bracket as those who are exempted from paying income taxes under RA No.10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law. “We are looking forward to the full compliance by the concerned establishments with  this financial relief under RA No.11869 for low-income single parents who have single-handedly been raising their babies, toddlers and/or preschoolers,” Villafuerte, president of the National Unity Party (NUP), said. “The BIR’s release of the guidelines on tax breaks for establishments that will comply with this provision of the social protection program for single dads and moms under RA No.11869 will certainly provide relief to this sector’s members, many of whom have been hit badly by Covid-19 and are probably taking a while to get back on their feet after the pandemic,” he added. Under RR No.1-2023, the actual grant of the discounts and VAT exemptions to the qualified single parents are subject to the guidelines to be issued by the Department of Health (DOH), in coordination with  the Food and Drug Administration (FDA), Philippine Health Insurance Corp. (PhilHealth) and the Department of the Interior and Local Government (DILG). Villafuerte explained that under RR No.1-2023, qualified single parents or the guardians of qualified dependents are entitled to the 10 percent discount on, and VAT-free purchases from drugstores, pharmacies, grocery stores and similar establishments of baby's milk or infant formula, food supplements and micronutrient supplements as well as sanitary diapers for their kids with the age of six years or below. Qualified solo parents are also entitled to the same privileges on their purchases of branded or generic medicines, vaccines and medical supplements, provided that these are medically prescribed by attending physicians for preventing or treating diseases, illnesses and injuries, and whose prescriptions are in the names of the qualified children. For every purchase, the solo parent has to present to the establishment his or her Solo Parent Identification Card (SPIC) and booklet issued by either the Solo Parents Office (SPO) of the provincial or city government or Solo Parents Division (SPD) of the municipal government. Under the BIR order, establishments that will honor the price discounts and VAT exemptions may claim such as tax deductions from their gross incomes, and based on the cost of the goods sold. Any violation under RR No.1-2023 shall suffer the penalties set in the Tax Code and RA 11861. The directive was signed by Deparrtment of Finance (DOF) Secretary Benjamin Diokno, as recommended by BIR Commissioner Romeo Lumagui Jr.