Policy purpose and coverage
- Section 32 of Republic Act No. 7277 (as amended) is expanded to provide additional benefits and privileges for persons with disability (PWD) (Section 1).
- The benefits include discounts and VAT exemptions on enumerated goods and services for the exclusive use and enjoyment or availment of the PWD (Section 1(a)).
- Educational assistance must enable PWD to pursue primary, secondary, tertiary, post tertiary, as well as vocational or technical education in both public and private schools (Section 1(b)).
- The law includes priority accommodations and express lanes for PWD in commercial and government establishments (Section 1(e)).
- The law limits availment of the enumerated privileges to PWD who are Filipino citizens, proven through specified identification documents (Section 1, last paragraph).
Expanded benefits and VAT treatment
- Section 32(a) of Republic Act No. 7277 is amended to grant at least twenty percent (20%) discount and exemption from the value-added tax (VAT), if applicable on specified sales of goods and services for the exclusive use and enjoyment or availment of the PWD (Section 1(a)).
- The 20% discount and VAT exemption apply to the following:
- (1) Fees and charges for utilization of services in hotels and similar lodging establishments; restaurants and recreation centers (Section 1(a)(1)).
- (2) Admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement (Section 1(a)(2)).
- (3) Purchase of medicines in all drugstores (Section 1(a)(3)).
- (4) Medical and dental services, including diagnostic and laboratory fees (including x-rays, computerized tomography scans and blood tests) and professional fees of attending doctors in all government facilities, subject to guidelines to be issued by the Department of Health (DOH) in coordination with PhilHealth (Section 1(a)(4)).
- (5) 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 rules and regulations to be issued by the DOH in coordination with PhilHealth (Section 1(a)(5)).
- (6) Fare for domestic air and sea travel (Section 1(a)(6)).
- (7) Actual fare for land transportation travel including public utility buses or jeepneys (PUBs/PUJs), taxis, asian utility vehicles (AUVs), shuttle services and public railways, including Light Rail Transit (LRT), Metro Rail Transit (MRT) and Philippine National Railways (PNR) (Section 1(a)(7)).
- (8) Funeral and burial services for the death of the PWD (Section 1(a)(8)).
- Funeral and burial discount rule: the beneficiary (or any person who shoulders funeral and burial expenses) must claim the discount for the deceased PWD upon presentation of the death certificate (Section 1(a)(8)).
- Funeral and burial expenses covered: the expenses cover purchase of casket or urn, embalming, hospital morgue, transport of the body to intended burial site in the place of origin (Section 1(a)(8)).
- Funeral and burial expenses excluded: the discount excludes obituary publication and the cost of the memorial lot (Section 1(a)(8)).
- Section 1(b) grants educational assistance to PWD through scholarships, grants, financial aids, subsidies and other incentives to qualified PWD, including support for books, learning materials, and uniform allowance to the extent feasible, subject to the condition that PWD must meet the minimum admission requirements.
- The law provides for continuity of benefits: the Government shall, to the extent practicable and feasible, continue the same benefits and privileges given by GSIS, SSS, and Pag-IBIG as enjoyed by those in actual service (Section 1(c)).
- Special discounts in special programs: the government may grant special discounts in special programs for PWD on purchase of basic commodities, subject to guidelines by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA) (Section 1(d)).
- Express lanes and priority: the law mandates express lanes for PWD in all commercial and government establishments; when absent, priority shall be given to PWD (Section 1(e)).
Proof of entitlement and discount limits
- The enumerated privileges under Section 32(a) are available only to PWD who are Filipino citizens, proven by submitting any of the following:
- (i) An identification card issued by the city or municipal mayor or the barangay captain where the PWD resides;
- (ii) The passport of the PWD concerned; or
- (iii) A Transportation discount fare Identification Card (ID) issued by the National Council for the Welfare of Disabled Persons (NCWDP) (Section 1, last paragraph).
- The law bars multiple discount stacking above the stated rule: privileges may not be claimed if the PWD claims a higher discount granted by the commercial establishment and/or under other existing laws or in combination with other discount programs (Section 1, last paragraph).
Tax deduction for establishments
- Establishments may claim the discounts granted under Section 32(a), paragraphs (1), (2), (3), (5), (6), (7), and (8) as tax deductions based on the net cost of the goods sold or services rendered (Section 1, last two provisos).
- The cost of the discount is allowed as a deduction from gross income for the same taxable year that the discount is granted (Section 1).
- The law requires inclusion and documentation: 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 1).
Tax incentives for caregivers (dependents treatment)
- The law amends Section 33 of Republic Act No. 7277 by granting incentives to those caring for and living with a PWD (Section 2).
- A taxpayer who cares for a PWD within the fourth civil degree of consanguinity or affinity to the taxpayer, regardless of age, who is not gainfully employed and chiefly dependent upon the taxpayer, must have the PWD treated as a dependent under Section 35(b) of the NIRC of 1997, as amended (Section 2(a)).
- As dependents, the individual taxpayers caring for such PWD are accorded the privileges granted by the NIRC insofar as dependents under Section 35(b) are concerned (Section 2(a)).
Implementation and agency rules
- The Department of Social Welfare and Development (DSWD) shall promulgate the necessary implementing rules and regulations for effective implementation of the law in consultation with:
- the Department of Health (DOH),
- the Department of Finance (DOF), and
- the National Council on Disability Affairs (NCDA) (Section 3).
- Even if implementing rules are not promulgated, the law proceeds to implementation upon effectivity (Section 3).
Separability, repeal, and legal impact
- Separability: if any provision is declared invalid or unconstitutional, the remaining provisions stay in full force and effect (Section 4).
- Repealing clause: all laws, orders, decrees, rules and regulations, and other parts inconsistent with Republic Act No. 10754 are repealed, amended, or modified accordingly (Section 5).