Constitutional and statutory policy basis
- The circular anchors fare-discount policy on Article XV, Section 4 of the 1987 Philippine Constitution, which recognizes the family’s duty to care for elderly members and the State’s duty to design social security programs.
- The circular reiterates the State commitment under Section 2, Republic Act No. 7277, which directs full support for disabled persons’ well-being and integration into mainstream society.
- The circular reiterates constitutional support for prioritizing the needs of children, the elderly, and the disabled, grounded on Article XIII, Section II of the 1987 Philippine Constitution.
- The circular restates and modifies the LTFRB policy on fare discounts for the elderly, disabled persons, and students.
Covered public transport and discount mandate
- The circular mandates fare discounts on all public utility vehicles except trucks for hire and except school transport service.
- Operators must provide a fare discount equivalent to 20% of the authorized fare.
- For Airconed Buses, the 20% discount is computed based on the regular/normal fare being collected.
- The circular directs that the covered groups are entitled to the fare discounts; the circular states that the groups cannot avail of fare discount only in the clause specifying the covered exceptions (i.e., trucks for hire and school transport service are excluded from the mandate).
Elderly (Senior Citizen) discount rules
- “Elderly,” also called “Senior Citizen,” means any resident citizen of the Philippines who is at least sixty (60) years old.
- The elderly definition includes persons who have retired from both government offices and private enterprises.
- The elderly must have an income of not more than sixty-thousand pesos (P60,000.00) per annum, as defined in Republic Act No. 7432.
- Elderly fare discount use requires presentation of the Senior Citizen ID provided or issued by the Office for Senior Citizens Affairs (OSCA) established by Local Government Units (LGUs).
Disabled persons discount rules
- “Disabled persons” are those suffering from restriction or different abilities due to mental, physical or sensory impairment that affects performance of an activity in a manner or within a range considered normal for human beings.
- The circular adopts the definition of disabled persons using the framework of Republic Act No. 7277.
- Disabled persons availing of the discount must present ID cards issued by the Department of Social Welfare and Development (DSWD) or the National Council for the Welfare of Disabled Persons (NCWDP).
Student discount rules
- “Students” covered are 21 years old and below.
- Covered students must be enrolled in elementary, secondary and collegiate schools.
- Coverage includes academic, vocational and technical schools that are duly recognized by the government.
- Excluded from the student coverage are students enrolled in short term courses of seminar type.
- Students must present student ID cards or registration papers duly validated by their schools.
- Validated school documents must bear pictures with the students’ names and schools indicated.
- Student fare discounts run on a YEAR-ROUND BASIS, from Monday to Sunday, including during school break or vacation.
Enforcement, operator posting, and compliance requirements
- Operators covered and affected by the circular must post a copy of the circular at a conspicuous place in their terminals and in all their public utility vehicles.
- The circular imposes penalties on the operator for failure to extend the discounts, even if the violation is committed by the driver or conductor, under the principle of “respondiat superior.”
- The operator is responsible for extending discounts to the elderly, disabled persons, and students who present the required IDs or validated documents under the circular’s eligibility rules.
Penalties for failure to extend discounts
- Failure to extend discounts to elderly, disabled persons, and students subjects the operator to penalties imposed by the Board.
- First offense carries a fine of P 3,000.00.
- Second offense carries a fine of P 5,000.00.
- Third offense results in suspension of CPC for sixty (60) days.
- Fourth offense results in cancellation of the CPC.
- Penalties for violating the circular apply independently and without prejudice to sanctions and penalties for violations of Republic Act No. 7432 and Republic Act No. 7277.
Supersession and inconsistency rule
- The circular supersedes any and all issuances inconsistent with its provisions.
- The circular sets its fifteen (15) days effectivity period measured from the filing of three (3) copies with UP Law Center under Presidential Memorandum Circular No. 11 (09 October 1992).