Senate pushes tax exemption for seniors
A bill that seeks to exempt senior citizens from the 12-percent expanded value-added tax (E-VAT) may be enacted into law next year, Senator Pia Cayetano said Wednesday.
Cayetano, head of the Senate Committee on Social Justice, Welfare and Rural Development, said that the Senate passed Senate Bill 3561 or the “Expanded Senior Citizens’ Act of 2009” on second reading before the chamber went on recess.
She said the measure she authored could be enacted into law next year when Senate passes it on third and final reading upon its resumption.
Aside from exemption from E-VAT on basic commodities purchases and additional benefits and privileges for senior citizens, the bill also seeks to amend Republic Act 7342 or “An Act to maximize the contribution of senior citizens to nation building, grant benefits and special privileges and for other purposes.
Cayetano said that a counterpart measure has been passed by the House of Representatives.
A bicameral conference committee will be created to craft a common version of the measure when Congress resumes session in January.
“The options of the committee were narrowed down to two: First, increasing the current 20 percent senior citizens discount to 30 percent; and second, exempting senior citizens from the 12 percent E-VAT. In the end, the latter was chosen,” said Cayetano.
The bill was unanimously approved during plenary debates. Senate President Juan Ponce Enrile and Senate Minority Leader Aquilino “Nene” Pimentel, Jr. co-authored the same measure.
Other co-authors are Senators Loren Legarda, Lito Lapid, Miriam Defensor-Santiago, Edgardo Angara, Manny Villar, Antonio Trillanes IV, Mar Roxas, Bong Revilla Jr., Alan Peter Cayetano, Miguel Zubiri, Jinggoy Estrada, and Jamby Madrigal.



