Senior citizens to be exempt from VAT soon

By Christine Avendaño
Philippine Daily Inquirer

MANILA, Philippines—Very soon, senior citizens would no longer have to pay the 12-percent expanded value-added tax (VAT) when they purchase goods and services.

The Senate is set to ratify this week the “Expanded Senior Citizens Act” which exempts those over the age of 60 from the VAT.

The congressional bicameral conference committee reconciled the Senate and House versions of the act last week, according to Sen. Pia Cayetano, chair of the Senate committee on social justice and the bill’s principal author.

Once the measure is ratified, it will be sent to President Gloria Macapagal-Arroyo for her signature and it will become law.

The VAT exemption will apply to the following: Medicines and essential medical supplies and equipment; physician, dental
, diagnostic and laboratory fees; public transport fares including for air and sea travel; hotel and restaurant charges; movie and other places of amusement fees; and funeral and burial services.

Poor senior citizens would also be granted a monthly stipend of P500 and assistance of P2,000 to their next of kin when they die.

They may also enjoy a 5-percent discount on water and electric bills provided the utilities are under their name, and consumption is below 100 kilowatt-hours for electricity and 30 cubic meters for water, respectively, per month.