BIR to Expand PWD Discount for Commodities and Necessities
The Bureau of Internal Revenue (BIR) issued Revenue Regulation (RR) No. 9-2019 which will add products under basic necessities and prime commodities subjected to special discounts for Persons with Disabilities (PWD). This will amend RR No. 5-2017 which gave PWDs discounts relative to the sale of goods and services they can exclusively use and enjoy.
The said measure prescribes the rules and regulations of Republic Act (RA) No. 10754, also known as “An Act Expanding the Benefits and Privileges of Persons with Disability (PWD).” Department of Finance (DOF) Secretary Carlos Dominguez III and BIR Commissioner Caesar Dulay signed the regulations on August 8, 2019. As of this writing, the BIR has yet to upload a copy of the latest provisions.
List of Necessities and Commodities Covered by the PWD Discount
According to the BIR, a PWD shall enjoy a special discount of 5% of the regular retail price but are not exempt from the 12% value-added tax (VAT) levied on the products. RR No. 9-2019 will include 21 necessities and 22 commodities with a special discount of 5%.
However, the discount is limited to purchases not exceeding Php 1,300 per week, and the measure limits the purchase of discounted goods to an individual classified as a PWD. Listed below are the following items covered by the discount:
- Marine and poultry goods;
- Packaged potable water;
- Locally-manufactured instant noodles;
- Coffee and creamer;
- Cooking oil;
- Laundry soap;
- Kerosene; and
- Liquified Petroleum Gas (LPG)
- Processed meat;
- Fish sauce (Commonly known as patis);
- Soy sauce;
- Bath soft;
- Animal feeds;
- Veterinary products;
- School supplies;
- Nipa shingle;
- Construction materials;
- Steel wires;
- Electrical supplies; and
- Batteries (Excluding automotive and cellphone batteries)
Currently, PWDs enjoy a 20% discount from establishments relative to the sale of goods and services such as but not limited to hotels, cinemas, medical facilities, funeral and burial services, and transportation.
The measure’s effectivity is as early as September 2019 or 15 days after the Official Gazette or two newspapers published RR No. 9-2019.