The Department of Trade and Industry (DTI) emphasized that establishments should be giving senior citizens the option to purchase goods either through their mandated seniors’ discount or the promo fares offered.
In a media briefing on Jan. 5, Assistant Secretary Amanda Nograles of the Consumer Protection Group clarified that there should be no double discounts included in the perks for senior citizens.
If a senior citizen wishes to purchase an item that is under a promo scheme, the consumer should have the freedom to choose which option, either the discounted price from the senior citizen card or the promo, is better suited to their financial needs.
"So, it's a violation kapag ang establishment sinabi they will automatically apply the 20 percent, hindi ka na magaapply sa promo, or sabihin niya they will apply the promo discount, hindi na yung senior citizen. Dapat kinokompute whichever is more favorable to the senior (...if an establishment says they will automatically apply the 20 percent, and will no longer apply the promo, or they will apply the promo and not the senior citizen discount. [Establishments] should compute whichever cost is more favorable to the senior)," she explained.
According to Republic Act No. 9994 or the Expanded Senior Citizens Act of 2020, seniors have “20 percent discount and exemption from the value -added tax (VAT), if applicable, on the sale of the goods and services from all establishments, for the exclusive use and enjoyment or availment of the senior citizen.”
These include medicine, health professional fees, medical and dental services, transport fees, prices of products and services offered by business establishments, admission fees in arts centers, and funeral and burial costs.
They are also exempted from paying individual income taxes, especially minimum wage earners in accordance with Republic Act No. 9504.
Seniors are also granted a “minimum of five percent discount relative to the monthly utilization of water and electricity supplied by the public utilities.”
The issue on senior citizen discounts resurfaced in the public eye when a female senior citizen filed a legal complaint against a hotel in Pasig City for refusing her discount and VAT exemption due to the establishment’s alleged without promo permit for its rates.
The complainant noted Republic Act No. 7394 or the Consumer Act of the Philippines that says sales promotion campaign made by individuals or companies must secure permission from the DTI.
Nograles also noted that the 20 percent discount and VAT exemption of seniors is actually within the mandate of local government units’ Office of Senior Citizens’ Affairs (OSCA) and the National Commission of Senior Citizens (NCSC).
“The role of DTI with respect to senior citizen discounts would be on the five percent special discount for basic necessities and prime commodities (BNPC) when seniors buy in groceries and supermarkets,” she said.
DTI Secretary Alfredo E. Pascual said that the agency has only received 136 complaints, which is a small number compared to the complaints received by online platforms and other establishments. Most of these have been referred to OSCA.
Even then, the agency said it still helps senior citizens in filing cases and flagging establishments that have violated the law.
“Since DTI has a "No-Wrong-Door" policy, if a senior citizen reports a complaint to us, ultimately since it's a consumer issue, we accept the complaints and then we refer that to OSCA to file a case or to NCSE…We work together with them to really get rid of those who refuse to grant the discount,” she remarked.
They facilitate the cases as soon as they accept the complaints and assess the evidence presented, Nograles added.
Penalties for people or companies who refuse senior citizen discounts, under the Expanded Senior Citizens Act, will pay fines from P50,000 to P200,000, depending on the repetition of the violation. Imprisonment of two years to six years may also be imposed.