Small and medium-scale drugstores asked the government to stop the Implementing Rules and Regulations of Republic Act 9994 or the Expanded Senior Citizens Act of 2010 that mandates senior citizens to a 20 percent discount on drugs, exempting them from value-added tax which shall be absorbed by the retailer.

Members of the Drugstore Association of the Philippines (DSAP) are protesting the new provision of the Implementing Rules and Regulations of RA 9994 set to be enacted before the end of this month.

The present law provides for a 20 percent discount for senior citizens. The new provision will further exempt them from VAT.

Josephine Inocencio, president of DSAP, said that she has witnessed the phenomenon wherein several drugstores would open and close shop after realizing that the industry is in rough times.

“Many have opened and closed down their drugstores because of several factors. First, there is a very stiff competition. Second, the prices of medicines came down and there, the law is not conducive to businesses,” Inocencio said, in a forum organized by the Philippine College of Physicians (PCP) and the Pharmaceutical Healthcare Association of the Philippines (PHAP).

If small and medium-sized drugstores would absorb the VAT for the senior citizens, DSAP fears their problem would worsen as they are setting a price margin of 5 to 10 percent and the new provision could eat up a large chunk of their budget for operational expenses that includes rent and salary for employees.