Revised Rules on Special Discounts to Senior Citizens and PWDs on Their Purchase of Basic Commodities (DTI–DA–DOE Joint Administrative Order No. 24-02)

Photo from Pexels | RDNE Stock project


The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

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:

On March 21, 2024, the Department of Trade and Industry, together with the Department of Agriculture and Department of Energy, signed Joint Administrative Order No. 24-02 (JAO No. 24-02), which revised the rules on granting special discounts to Senior Citizens and Persons With Disabilities (PWDs) on the purchase of basic necessities and prime commodities (BNPC). 

 

Under the JAO, every Senior Citizen or PWD is granted a special discount of five percent (5%) of the regular retail price of basic necessities and prime commodities, without exemption from the value-added tax (VAT). The total amount of special discount shall not exceed One Hundred Twenty-Five Pesos (PHP125.00) per week. The JAO also states that the purchase cap is Two Thousand Five Hundred Pesos (PHP2,500.00).

 

To be sure, this special discount is separate and distinct from the twenty percent (20%) discount provided under the Expanded Senior Citizens Act of 2010 (Republic Act No. 9994), and the Act Expanding the Benefits and Privileges of Persons with Disability (Republic Act No. 10754).

---

 

On March 21, 2024, the Department of Trade and Industry, together with the Department of Agriculture and Department of Energy, signed Joint Administrative Order No. 24-02 (JAO No. 24-02), which revised the rules on granting special discounts to Senior Citizens and Persons With Disabilities (PWDs) on the purchase of basic necessities and prime commodities (BNPC). According to Department of Trade and Industry Secretary Alfredo Pascual, the JAO was issued in recognition of the ”valuable contributions of our senior citizens and persons with disabilities to our society”, and the initiatives under the revised rules manifest the country’s “unwavering commitment to ensure their access to essential goods.” (Department of Trade and Industry, 2024).

A summary of the JAO for easy digest and application is written below:

 

Special Discount

Every Senior Citizen or Person With Disability is granted a special discount of five percent (5%) of the regular retail price of basic necessities and prime commodities, without exemption from the value-added tax (VAT). 

The total amount of special discount shall not exceed One Hundred Twenty-Five Pesos (PHP125.00) per week. The JAO also states that the purchase cap is Two Thousand Five Hundred Pesos (PHP2,500.00).

To be sure, this special discount is separate and distinct from the twenty percent (20%) discount provided under the Expanded Senior Citizens Act of 2010 (Republic Act No. 9994), and the Act Expanding the Benefits and Privileges of Persons with Disability (Republic Act No. 10754).

(Sec. 3, JAO No. 24-02)

 

What are basic necessities and prime commodities or BNPCs?

The Joint Administrative Order  provides a definition for “basic necessities” and “prime commodities”, as well as a list of goods belonging to each category.

1. Basic Necessities are goods that are vital to the needs of consumers for their sustenance and existence. 

 

Basic Necessities include:

1. All kinds and variants of rice (except imported specialty rice)
2. All kinds and variants of corn 
3. All kinds of locally produced bread (cakes and pastries not included) 
4. All locally produced fresh, dried, and canned fish, and other marine products (including those live, chilled, frozen, and in various modes of packaging) 
5. All locally produced fresh pork, beef, and poultry meat (except premium grade) 
6. All fresh chicken and duck eggs 
7. Locally manufactured potable water in bottles and containers regardless of size 
8. Fresh and processed milk (excluding foods for special medical purposes) 
9. Locally produced fresh vegetables including root crops 
10. All kinds of fresh fruits 
11. Locally manufactured instant noodles 
12. Locally produced coffee (only whole beans, ground beans, instant up to three (3) main ingredients) 
13. All kinds of sugar (except artificial sweeteners) 
14. Cooking oil (only coconut oil, palm oil, soybean oil, canola oil, and vegetable oil) 
15. Iodized salt 
16. Locally manufactured laundry and detergent soap 
17. Locally produced firewood 
18. Locally manufactured charcoal 
19. All kinds of candles (except decorative and scented) 
20. Household liquefied petroleum gas (LPG) with a net content of not more than eleven (11) kilograms (only once every five (5) months) bought from LPG dealers
21. Kerosene, not more than two (2) liters per month.

2. Prime Commodities are goods that are not considered as basic necessities but are essential to consumers.

Prime Commodities include:

1. All kinds of flour
2. All locally manufactured dried, processed and canned pork, beef, and poultry meat 
3. All kinds of locally manufactured dairy products, excluding fresh and processed milk and foods for special medical purposes
4. All kinds of onions and garlic 
5. Locally manufactured vinegar, patis, and soy sauce (except spiced) 
6. All kinds of toilet or bath soap 
7. Fertilizer 
8. Pesticides 
9. Herbicides 
10. Poultry feeds, livestock feeds, and fishery feeds
11. Veterinary products 
12. Pad Paper, school supplies 
13. Nipa shingle 
14. Sawali 
15. Cement, Clinker, Gl sheets 
16. Hollow Blocks 
17. Plywood 
18. Plyboard 
19. Construction nails 
20. Batteries (single-use household batteries) 
21. Electrical supplies and light bulbs 
22. Steel wires

(Sec. 2, JAO No. 24-02)

 

Establishments Covered

This JAO shall apply to all business establishments selling basic necessities and prime commodities, except establishments registered under the  Barangay Micro Business Enterprises (BMBEs) Act of 2002 and cooperatives registered with the Cooperative Development Authority (CDA).

(Sec. 1, JAO No. 24-02)

 

General Guidelines for Availment

To avail of the special discount when purchasing BNPCs, the Joint Administrative Order provided the following general guidelines:

 

For Senior Citizens 

1. Present either your

1. 1. 1. Senior Citizen ID duly issued by the  Senior Citizens Affair (OSCA), or
      2. Any government-issued ID that reflects your name, picture, and date of birth; and

 

2. Present your purchase booklet. 

 

For PWDs 

1. Present your PWD ID,  duly issued by a Persons with Disability Affairs Office (PDAO) or City/Municipal Social Welfare and Development Office (C/MSWDO), or the National Council on Disability Affairs (NCDA); and,
2. Present your purchase booklet.

 

For Senior Citizens who are also PWDs 

1. Present either your
   1. OSCA-issued Senior Citizen Card, or
   2. PWD ID; and
2. Present your two (2) purchase booklets (one issued to Senior Citizens, and one issued to PWDs).

(Secs. 4-5, JAO No. 24-02)

 

Purchase through a Representative

A representative may purchase basic necessities and prime commodities and avail of the special discount on behalf of the Senior Citizen or PWD, provided all of the following requirements are presented:

1. Representative’s valid ID;
2. Senior Citizen or Person With Disability lD, whichever is applicable;
3. Purchase booklet;
4. Signed Authorization Letter, which is valid for only seven (7) days from date of issuance by the Senior Citizen or PWD; and
5. Medical prescription, if applicable.

(Sec. 6, JAO No. 24-02)

 

No Double Discount

When basic necessities and prime goods are sold on a promotional discount, the Senior Citizen or PWD can avail of the establishment’s offered discount or the 5% discount provided herein, whichever is higher and more favorable.

(Sec. 7, JAO No. 24-02)

RELATED ARTICLES:

• Elderly Filipino Week Celebrates the Contribution of Senior Citizens to Nation Building (Proclamation No. 470, s. 1994) 

• Are working senior citizens entitled to labor standards benefits? 

 

Click here to subscribe to our newsletter

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.

All rights reserved.