Amendments to Magna Carta for Persons with Disability

Policy, title, and naming changes

Republic Act No. 9442 updates the governing terminology from “disabled persons” to “persons with disability” throughout Republic Act No. 7277 (Section 4).
Republic Act No. 7277 is retitled as the “Magna Carta for Persons with Disability” (Section 4).

New privileges and incentives for persons

Section 1 inserts a new Chapter 8 titled “Other Privileges and Incentives” under Title Two of Republic Act No. 7277, containing Sections 32 and 33.
Section 32 provides that persons with disability are entitled to the following privileges (upon meeting required proof and limitations):
- At least 20% discount from all establishments relative to the utilization of all services in hotels and similar lodging establishments; and restaurants and recreation centers for exclusive use or enjoyment of persons with disability.
- At least 20% discount on admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement for exclusive use or enjoyment of persons with disability.
- At least 20% discount for the purchase of medicines in all drugstores for exclusive use or enjoyment of persons with disability.
- At least 20% discount on medical and dental services, including diagnostic and laboratory fees (including x-rays, computerized tomography scans, and blood tests) in all government facilities, subject to DOH guidelines issued in coordination with PHILHEALTH.
- At least 20% discount on medical and dental services, including diagnostic and laboratory fees, and professional fees of attending doctors in all private hospitals and medical facilities, in accordance with DOH rules and regulations issued in coordination with PHILHEALTH.
- At least 20% discount on fare for domestic air and sea travel for exclusive use or enjoyment of persons with disability.
- At least 20% discount in public railways, skyways, and bus fare for the exclusive use and enjoyment of persons with disability.
- Educational assistance to persons with disability to pursue primary, secondary, tertiary, post tertiary, and vocational or technical education, in both public and private schools, through scholarships, grants, financial aids, subsidies, and other incentives to qualified persons with disability, including support for books, learning materialism, and uniform allowance to the extent feasible (with conditions stated in Section 32).
- The provision of express lanes for persons with disability in all commercial and government establishments; where absent, priority shall be given to them.
Section 32 requires that persons with disability must be Filipino citizens to avail of these privileges and must submit any of the following proof:
- An identification card issued by the city or municipal mayor or the barangay captain of the place where the persons with disability resides.
- The passport of the concerned person with disability.
- A Transportation Discount Fare Identification Card (ID) issued by the National Council for the Welfare of Disabled Persons (NCWDP).
Section 32 limits claims and mandates priority of higher benefits:
- The privileges may not be claimed if the person with disability claims a higher discount granted by the commercial establishment and/or under other existing laws or in combination with other discount programs.

Rules on tax deductions and incentives

Section 32 authorizes establishments (for specific categories) to claim the discounts as tax deductions:
- Establishments may claim the discounts granted in sub-sections (a), (b), (c), (e), (f), and (g) as tax deductions based on the net cost of goods sold or services rendered.
Section 32 provides timing and reporting rules for the tax deduction:
- The cost of the discount is allowed as a deduction from gross income for the same taxable year that the discount is granted.
- The total amount of the claimed tax deduction, net of value-added tax if applicable, must be included in gross sales receipts for tax purposes and is subject to proper documentation and the provisions of the National Internal Revenue Code (NIRC), as amended.
Section 33 extends incentives for caregivers and for certain disability-focused housing:
- Individuals caring for and living with a person with disability are entitled to treatment of the person with disability as dependents under Section 35(A) of the NIRC, as amended, and as such, receive privileges granted for taxpayers with dependents under that provision.
- Individuals or nongovernmental institutions establishing homes, residential communities, or retirement villages solely to suit the needs and requirements of persons with disability are entitled to:
  - Realty tax holiday for the first five years of operation.
  - Priority in the building and/or maintenance of provincial or municipal roads leading to the home, residential community, or retirement village.

Restrictions, delivery from ridicule, vilification

Section 2 inserts new provisions under Republic Act No. 7277 titled “Title Four: Prohibitions on Verbal, Non-verbal Ridicule and Vilification Against Persons with Disability” with Chapter 1 and Chapter 2, and new Sections 39, 40, 41, and 42.
Section 39 defines public ridicule as making fun or contemptuous imitating or making mockery of persons with disability whether in writing, or in words, or in action due to their impairment/s.
Section 40 prohibits any individual, group, or community from executing ridicule acts in any time and place which could intimidate or result in loss of self-esteem of persons with disability.
Section 41 defines vilification as activity in public which incites hatred towards, serious contempt for, or serves ridicule of persons with disability.
Section 42 prohibits any individual, group, or community from vilifying any person with disability in a manner that could result in loss of self-esteem.

Penalties and consequences for violations

Section 3 amends the penal clause by providing penalties for violations, abuse of privileges, and added consequences.
Section 46(a) provides penalties for violating any provision of Republic Act No. 7277 as amended by Republic Act No. 9442:
- For the first violation, the penalty is a fine of not less than PHP 50,000 but not exceeding PHP 100,000, or imprisonment of not less than six months but not more than two years, or both, at the discretion of the court.
- For any subsequent violation, the penalty is a fine of not less than PHP 100,000 but not exceeding PHP 200,000, or imprisonment of not less than two years but not more than six years, or both, at the discretion of the court.
Section 46(b) punishes abuse of granted privileges:
- Abuse of privileges is punishable by imprisonment of not less than six months or a fine of not less than PHP 5,000 but not more than PHP 50,000, or both, at the discretion of the court.
Section 46(c) makes corporate violators accountable:
- If the violator is a corporation, organization, or similar entity, the officials thereof directly involved are liable.
Section 46(d) requires deportation for aliens/foreigners:
- If the violator is an alien or a foreigner, he shall be deported immediately after service of sentence without further deportation proceedings.
Section 46(d) also authorizes cancellation or revocation of permits:
- Upon filing of an appropriate complaint and after due notice and hearing, proper authorities may cause cancellation or revocation of the business permit, permit to operate, franchise, and other similar privileges of any business entity that fails to abide by Republic Act No. 7277 as amended.

Implementing rules, timelines, and effectivity

Section 5 directs the Department of Social Welfare and Development, the National Council for the Welfare of Disabled Persons, and the Bureau of Internal Revenue, in consultation with concerned Senate and House committees and other agencies, organizations, and establishments, to formulate implementing rules and regulations.
Section 5 requires completion of implementing rules within six months after effectivity of Republic Act No. 9442.
Section 6 sets the effectivity date rule: 15 days after publication in any two newspapers of general circulation.