Recto pushes bill exempting persons with disabilities from 12% VAT
Persons with disabilities (PWDs) will soon be enjoying the same benefits accorded to our senior citizens once the bill granting them tax exemption is signed into law.
In filing Senate Bill 2483, Senate President Pro-Tempore Ralph G. Recto wants to give PWDs additional privileges and incentives by exempting them from value-added tax (VAT).
At present, they are granted “at least twenty percent (20%) discount in all establishments” such as hotels, restaurants and recreation centers.
Recto cited a study by the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) which said that PWDs are often among the poorest segments of the population.
“Bearing that in mind and the fact that selected purchases by senior citizens are now exempt from Value-added Tax (VAT), we are now moving to exempt PWDs from the 12% VAT on purchase of selected goods and services,” Recto said.
The proposed 12% VAT exemption is on top of the 20% discount PWDs currently enjoy under the law, Recto pointed out.
“Once enacted into law, PWDs would be able to earn additional savings from their purchases and effectively place them at par with our senior citizens in terms of privileges and incentives granted under Philippine laws,” he said.
Under Recto’s proposal, the 12% VAT exemption will cover services in hotels and other lodging establishments, restaurants, recreation centers, cinemas, concert halls, amusement parks, medicines, medical and dental services (including professional fees, x-rays, laboratory fees, CT scan and blood tests), domestic air and sea fares, and public transportation.