Through my website, I receive quite a few inquiries about the application of the Expanded Senior Citizens Act of 2010 (Republic Act 9994, as amended). I’m going to address the frequently- asked questions here.
I’ll use “elderly” to refer to senior citizens. Also remember, that aside from the 20 percent discount, elderlies are also exempted from value-added tax (VAT).
First, the law allows the elderly to present other IDs to prove his/her age. It does not have to be the ID issued by the Office of the Senior Citizen Affairs (OSCA).
Over the years, this has become a problem because other IDs are not accepted by some establishments. This problem comes from the implementing rules of RA 9994 which only identifies the OSCA-issued ID as the proof of eligibility. Inconsistencies between the law and its implementing rules are very common.
You see, the law is finalized in the two houses of Congress but the executive agencies and departments are responsible for drafting the implementing rules. Sometimes, the executive departments create rules that do not reflect the provisions in the law.
Second, the 20 percent discount applies to both dine-in and take-out orders (including drive-through) of the elderly, provided that the elderly himself/herself is present, and personally ordering the food.
My husband and I eat out regularly, and I often overhear the staff of some restaurants tell elderlies that the discount is only applicable to dine-in orders. This is wrong, and establishments should stop this practice.
Otherwise, they can be sued.
I understand that some elderlies do abuse the law by claiming the discount for purchases that are obviously meant for other people. For take-out, drive- thru, and delivery orders, the law allows quick service restaurants (fastfood) to give the 20 percent discount only to what the law calls the ‘Most Expensive Meal Combination (MEMC) — this is the most expensive and biggest single-serving meal with a single drink.
For example, if the order consists of five set meals, the restaurant can deduct the 20 percent discount from the most expensive meal among the five ordered set meals.
Third, the 20 percent discount does not apply to pre-contracted party packages (catering) or bulk orders.
Apparently, some people insist that even catering services paid for by the elderly is covered by the law. This is wrong.
If you own a catering service or if you accept bulk orders, you don’t have to deduct the 20 percent senior citizens discount from your price.
Fourth, elderlies can claim a five percent discount for their water and electric bills. However, please take note of these conditions: a) the meters should be in the name of the elderly b) the monthly consumption should not exceed 100 kilowatt hours for electricity and 30 cubic meters for water c) the five percent discount is deducted only once. Even if the house has two senior citizens, only one five percent discount can be given. Remember these conditions before claiming the discount.
Finally, the 20 percent discount and VAT exemption still applies even if the elderly is paying through credit cards.
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Author’s email: goldabenjamin@gmail.com
