Senator Villar seeks tax credits for businesses to ease cost of providing senior, PWD discounts

Senator Mark Villar has introduced a measure seeking to allow businesses to claim tax credits for mandatory discounts granted to senior citizens and persons with disabilities (PWDs).

According to Villar, the proposal aims to ease the financial burden on establishments while ensuring eligible beneficiaries continue to receive their benefits.

Senate Bill No. 2494, titled the proposed “Tax Credit for Senior Citizens and Persons with Disability Discount Act,” seeks to amend the Expanded Senior Citizens Act of 2010 and the Magna Carta for Persons with Disability.

Villar highlighted that businesses—particularly micro, small, and medium enterprises (MSMEs)—should not have to shoulder the full cost of implementing these mandated price reductions.

“Ang pagbibigay ng diskwento sa ating mga senior citizen at persons with disabilities ay mahalagang bahagi ng ating social protection programs. Ngunit hindi dapat iasa lamang sa mga negosyo ang buong bigat ng pagpapatupad ng mga benepisyong ito. Kailangan nating magkaroon ng mas patas na sistema na nangangalaga sa ating mga benepisyaryo habang tinutulungan din ang ating mga negosyo, lalo na ang mga MSME, na manatiling matatag at makapagpatuloy sa kanilang operasyon,” Villar said.

Under the measure, establishments could apply the exact cost of qualifying discounts directly against their national internal revenue tax liabilities as tax credits, replacing the current system where discounts are treated merely as tax deductions.

The bill allows unused tax credits from senior citizen discounts to be carried over to succeeding taxable years, though refunds or transfers remain prohibited. Meanwhile, it retains the existing tax deduction mechanism for the minimum 5% discount on qualified monthly water and electricity consumption for seniors.

Villar emphasized that the proposal strikes a crucial balance between protecting the welfare of seniors and PWDs and maintaining the financial viability of local businesses.

“Ang layunin natin ay matiyak na patuloy na matatanggap ng ating mga senior citizen at PWDs ang mga benepisyong nararapat sa kanila, habang binibigyan din natin ng mas patas na sistema ang mga negosyong nagpapatupad ng mga diskwentong ito. Sa ganitong paraan, napangangalagaan natin ang kapakanan ng ating mga kababayan at napapatibay ang ating mga negosyo bilang katuwang sa pag-unlad ng bansa,” he added.