A maximum of two years imprisonment and P200,000 fine will be imposed on any establishment or professional who refuses to give 20 percent discount on senior citizens’ purchases of goods and services.

Likewise, persons who abuse the privilege in accordance with the Expanded Senior Citizens Act of 2010 will be penalized with a fine of not more than P100,000 and prison term of not less than six months.

The penalties are contained in Revenue Regulations No. 7-2010 signed the other day by Finance Secretary Cesar Purisima and Bureau of Internal Revenue Commissioner Kim S. Jacinto-Henares to implement the Expanded Senior Citizens Act of 2010. It prescribed guidelines on how storeowners apply it and senior citizens avail of the privilege. It also imposes penalties to both traders and senior citizens who abuse the concession.

With the signing of the revenue regulations, Henares said the BIR will start enforcing the law on August 5 or 15 days after the publication of the said regulations in major news papers as required by existing rules and regulations.

By that date, the BIR apprehending and penalizing storeowners who refuse to give 20 percent discount to senior citizens.

Based on the regulations, a first time offender (businessman or professional) is slapped with fines of up to P100,000 and maximum one-year imprisonment.

For the second offense, the fine is increased to P200,000 and imprisonment of up to two years.

Persons who abuse the privilege is penalized with a fine of not more than P100,000 and jail term of not less than six months.

If the offender is a foreigner, he shall be deported immediately after serving the sentence without further deportation proceedings by the Bureau of Immigration.

If the offender is a corporation or any similar entity, the officials directly involved will be held liable. It may also result in the cancellation of business permit.