With the signing of Republic Act 9994 or the Expanded Senior Citizens Benefits Act of 2010 last February 16, 2010, Filipino senior citizens are now entitled to more benefits and discounts.

There are mixed reactions among senior citizens to RA 9994. Some welcomed the new law, a few were not aware of its benefits, others are skeptical on whether it could be implemented
at all.

Housewife Zenaida Aquino, 76, is a big fan of RA 9994. “Siyempre, masaya ako na nag-improve na ang dating republic act. Makakatulong ito sa akin lalo na sa sakit ko na diabetes (Of course, I am happy that the old republic act has been improved. It will help me a lot, especially with my diabetes),” she says. “Matagal ko na kinakailangan ng regular health maintenance, kaya buti nalang mas makakatipid ang pamilya ko sa pagbili ng syringe at insulin. (I have long needed regular health maintenance, and it’s a good thing my family can now save more when buying syringe and insulin.)”

However, there are some senior citizens who are still unaware of RA 7432. Siony Tan, an 82-year-old retired businesswoman comments, “Hindi ko pa alam kung ano meron diyan. Pero kung totoo nga yun, eh di mabuti kasi mas makakatipid ako. At alam kong pinahahalagahan na ng gobyerno ang mga senior citizens. (I don’t know about that yet. But if it is true, then it’s good news for now I can save more. And I know that the government is taking care of us senior citizens.)”

Hugo Polido, a 73-year-old retired barangay tanod, on the other hand, doesn’t think that RA 9994 will strictly be observed by everybody. “Pakiramdam ko naman na hindi rin kami papansinin ng mga tindahan at mga jeepney at taxi drivers, kaya kahit na meron ganoon republic act, parang walang kwenta din. (I feel that stores and jeepney and taxi drivers would not even pay attention to us, so even if the republic act is to be implemented, it will basically be useless),” he says.

Meanwhile, top officials of the Bureau of Internal Revenue (BIR) said the government will lose up to P30 billion annually from the new expanded senior citizens law which exempts them from the payment of 12-percent value-added tax (VAT) for their purchases of goods and services.

"What would prevent these senior citizens from claiming purchases of cars and other expensive items made by their children to escape payment of the VAT," Revenue commissioner Joel L. Tan-Torres told the revenue regional director conference.

The BIR chief formed a task force to study the effects and plug the loopholes in the law to minimize losses from this source.

Under the old RA 7432, senior citizens only got eight percent discount because of the imposition of the 12 percent VAT.

Revenue officials said the Department of Finance had opposed the passage of the Senior Citizens Benefit Act of 2010 because of the expected huge revenue losses.

They said losses could even exceed the P30-billion mark and not P1.6 billion as estimated by the authors of the law, unless the BIR could come out with strict regulations implementing the law.

They stressed that they are not questioning the wisdom of President Arroyo in approving the law as it alleviates the economic condition of the elderly bringing them additional assistance at this time of global economic uncertainties.

They said, however, that the fiscal cost of the law should be reflected in the collection target of the BIR as well as other tax eroding measures like the tax exemption of local water districts and certain insurance payments.

The BIR is targeting to raise P830 billion this year. Statistic showed it collected P63.8 billion last month which was P7 billion higher than the goal of P56 billion and P7.7 more than the actual take for the same period last year.( With a report from Jun Ramirez)