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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Persons with Disabilities (PWD) refer to those who are suffering from restriction or different abilities, as a result of mental, physical or sensory impairment, to perform an activity, in the manner or within the range considered normal for a human being. (Section 4, Title I, Republic Act No. 7277 or the Magna Carta for Disabled Persons)
No PWD shall be denied access to opportunities for suitable employment. A qualified PWD employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied person. (Section 5, Title II, Republic Act No. 7277 or the Magna Carta for Disabled Persons)
Persons with Disabilities (PWD) are part of Philippine society; thus, the State shall give full support to the improvement of the total well-being of disabled persons and their integration into the mainstream of society. Toward this end, the State shall adopt policies ensuring the rehabilitation, self-development and self-reliance of disabled persons. It shall develop their skills and potentials to enable them to compete favorably for available opportunities.
They have the same rights as other people to take their proper place in society. They should be able to live freely and as independently as possible. This must be the concern of everyone — the family, community and all government and nongovernment organizations.
The law says:
“[Persons with disabilities] are those suffering from restriction or different abilities, as a result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being” (Section 4 (a), Republic Act No. 7277, or the Magna Carta for Disabled Persons)
What does the term “disability” mean?
The law says:
“Disability shall mean:
- a physical or mental impairment that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individual;
- a record of such an impairment; or
- being regarded as having such an impairment.” (Section 4 (c), Republic Act No. 7277, or the Magna Carta for Disabled Persons)
What are the benefits entitled to a PWD?
Republic Act No. 10754 or the Act Expanding the Benefits and Privileges of Persons with Disability (PWD) provides that:
SECTION 1. Section 32 of Republic Act No. 7277, as amended, otherwise known as the “Magna Carta for Persons with Disability”, is hereby further amended to read as follows:
“SEC. 32. Persons with disability shall be entitled to:
“(a) At least twenty percent (20%) discount and exemption from the value-added tax (VAT), if applicable, on the following sale of goods and services for the exclusive use and enjoyment or availment of the PWD:
“(1) On the fees and charges relative to the utilization of all services in hotels and similar lodging establishments; restaurants and recreation centers;
“(2) On admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement;
“(3) On the purchase of medicines in all drugstores;
“(4) On medical and dental services including diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans and blood tests, and professional fees of attending doctors in all government facilities, subject to the guidelines to be issued by the Department of Health (DOH), in coordination with the Philippine Health Insurance Corporation (PhilHealth);
“(5) On medical and dental services including diagnostic and laboratory fees, and professional fees of attending doctors in all private hospitals and medical facilities, in accordance with the rules and regulations to be issued by the DOH, in coordination with the PhilHealth;
“(6) On fare for domestic air and sea travel;
“(7) On actual fare for land transportation travel such as, but not limited to, public utility buses or jeepneys (PUBs/PUJs), taxis, asian utility vehicles (AUVs), shuttle services and public railways, including light Rail Transit (LRT), Metro Rail Transit (MRT) and Philippine National Railways (PNR); and
“(8) On funeral and burial services for the death of the PWD: Provided, That the beneficiary or any person who shall shoulder the funeral and burial expenses of the deceased PWD shall claim the discount under this rule for the deceased PWD upon presentation of the death certificate. Such expenses shall cover the purchase of casket or urn, embalming, hospital morgue, transport of the body to intended burial site in the place of origin, but shall exclude obituary publication and the cost of the memorial lot.
“(b) Educational assistance to PWD, for them to pursue primary, secondary, tertiary, post tertiary, as well as vocational or technical education, in both public and private schools, through the provision of scholarships, grants, financial aids, subsidies and other incentives to qualified PWD, including support for books, learning materials, and uniform allowance to the extent feasible: Provided, That PWD shall meet the minimum admission requirements;
“(c) To the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), Social Security System (SSS), and Pag-IBIG, as the case may be, as are enjoyed by those in actual service;
“(d) To the extent possible, the government may grant special discounts in special programs for PWD on purchase of basic commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA); and
“(e) Provision of express lanes for PWD in all commercial and government establishments; in the absence thereof, priority shall be given to them.
“The abovementioned privileges are available only to PWD who are Filipino citizens upon submission of any of the following as proof of his/her entitlement thereto:
“(i) An identification card issued by the city or municipal mayor or the barangay captain of the place where the PWD resides;
“(ii) The passport of the PWD concerned; or
“(iii) Transportation discount fare Identification Card (ID) issued by the National Council for the Welfare of Disabled Persons (NCWDP).
“The privileges may not be claimed if the PWD claims a higher discount as may be granted by the commercial establishment and/or under other existing laws or in combination with other discount program/s.” (Section 1, R.A. No. 10754, amending Section 32 of R.A. 7277)
What are the incentives granted to establishments that grant discounts to PWD?
The law says:
“The establishments may claim the discounts granted in subsection (a), paragraphs (1), (2), (3), (5), (6), (7), and (8) as tax deductions based on the net cost of the goods sold or services rendered: Provided, however, That the cost of the discount shall be allowed as deduction from the gross income for the same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of value-added tax, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NIRC), as amended.” (Section 1, R.A. No. 10754)
Related article: Expanded benefits and privileges of persons with disability
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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