Palawan Representative Frederick Abueg of the National Unity Party (NUP) is pushing for an increase in the discount on sales and services given to senior citizens from the current 20% to 30 % to help the country’s elderly cope with rising living costs.
The NUP lawmaker said the hike in the senior citizen discount is necessary because the current rate is not enough to help the elderly support their needs.
Abueg noted that poverty incidence among senior citizens was 15.1% in 2003 and 16.2% in 2006. This means that they belong to the sector that has the 6th highest poverty incidence rate in the country.
He also cited a UN Population Fund report which estimated the population of senior citizens in the country to reach 23.63 million by 2050. "Ageing is a lifelong process. Today's young people will be part of the population of older people in 2050," Abueg said, pointing out that unlike in other countries, elderly citizens are no longer employed once they reach the age of 60 and above.
"Without a steady source of income or a stable job, our senior citizens only rely on their pensions, gifts or allowances given by relatives and sometimes, by their own pagsusumikap to make ends meet," Abueg added.
He noted that only a small percentage of senior citizens in the Philippines are covered by pensions and other retirement benefits as many of them belong to the informal sector.
Under House Bill 4664 filed by Abueg, senior citizens will get a total discount of 30% on the sale of goods and services from all establishments and exempted from value-added tax (VAT).
HB 4664 aims to amend Republic Act 7432, as amended, which is known as “An Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other Purposes.”
According to the 2010 National Statistical Coordinating Board report, there are 6.3 million elderly Filipinos aged 60 and above, constituting 6.9 percent of the population in the country.