Will President Arroyo finally heed the call of fellow senior citizens to approve a law that would exempt their lot from paying 12 percent value added tax on goods and services?

Malacañang Sunday could not yet give a categorical answer and just appealed to lawmakers to submit to the President the approved bill for immediate evaluation.

Deputy Presidential Spokesman Gary Olivar said the President intends to study the measure, which seeks to provide tax relief to the country’s elders but could reduce government revenues, together with her economic team.

So far, Olivar said the President, also a senior citizen, has not received a copy of the bill approved by the two houses of Congress.

"It's hard to speculate on the President's decision because she has not formally received a copy of the bill. We are waiting for the bill. We hope the Senate could hasten the submission of this measue so this could be studied by the President and her officials from Department of Finance, Department of Budget and Management," he said over goverment radio.

Amid calls from various groups for its immediate approval, Palace officials have given conflicting remarks on whether the President will sign into law the proposed “Expanded Senior Citizens Act of 2010."

Last Friday, Olivar said the President has to balance the interest of the senior citizens who could benefit from the measure as well as its possible dent on government revenue program. He said they are concerned that the new tax exemptions may complicate the process of administering VAT on goods and services and eventually derail fiscal targets.

A Palace statement on the same day, on the other hand, announced that bill giving tax relief to senior citizens will be signed into law by the President. House Speaker Prospero Nograles, in the statement, said the passage of the bill will be the President's early Valentine's gift to senior citizens.

Under the bill, purchases made by senior citizens will be exempted from the 12 percent VAT, allowing them to enjoy their full 20 percent discount. The measure also proposes a monthly stipend of P500 for each senior citizen, that will be subject to periodic congressional review.