Senior citizens to get full tax exemption on food, drugs starting July 6

GMANews.TV - 2 hours 47 minutes ago

Senior citizens will be fully exempt from value added tax (VAT) starting July 6 after officials from government and non-government agencies signed on Friday the implementing guidelines for the expanded Senior Citizens Act. The exemption from the 20-percent tax for senior citizens will cover purchases of food and medicines, as well as other services in restaurants and movie houses, GMA News’ Bernadette Reyes reported in “24 Oras." By December this year, senior citizens will also get a 5-percent discount on electric and water consumption, provided that the meters for these utilities are registered under their names and are below 100 kilowatt hours for electricity and 30 cubic meters for water. The guidelines serve as the implementing rules and regulations for Republic Act 9994, signed by President Gloria Macapagal-Arroyo last February. Drug store owners, however, expressed concerns on the implementation of the law, saying they would have to make adjustments in their systems before they can give the discounts. “Kailangan pa nila ang panahon para maireprogram ang kanilang mga machines o mga system para maka-adapt sa bagong batas," said Pharmaceutical and Healthcare Association of the Philippines (PHAP) president Josephine Inocencio.

(They [drug store owners] need more time to reprogram their machines or systems to as to adapt to the new law.)

Starting in 2011, indigent senior citizens will also receive monthly social pensions of P500 and free influenza vaccination, still in line with the expanded Senior Citizens Act guidelines.—JV, GMANews.TV