Uphold Philippine Senior Citizens Act

Senator Edgardo J. Angara today strongly upheld the rights of the Filipino elderly, citing that the imposition by some pharmacies of the 12% value-added tax (VAT) on the sale of medicines to senior citizens is a clear violation of the Senior Citizens Law. The VAT is imposed on most goods and services, including medicines.

"The wrong imposition of the 12% VAT on the sale of medicines deprives our senior citizens of the original 20% discount on the purchase of medicines. This approach of the BIR is really damaging. The pharmaceutical retailers should be the ones to shoulder and absorb the necessary tax burden," said Angara who authored the law that created the Senior Citizen's Act in 1992.

In celebration of this year's Elderly Filipino Week, Angara, aptly-called "Father of the Senior Citizens' Act", also said that government should not incur income at the expense of the Filipino elderly because such discount is already minimal as compared to other countries. At present, there are about 5.2 million elderly Filipinos.

"Instead of getting a 20% discount as mandated by law, the senior citizens only get an eight percent discount for their medicine purchases. This is like the left hand taking away what the right hand gave," he said. "What the government has given to the senior citizens must not be taken away from them."

Angara also pointed out that VAT exempt transactions include medical, dental, hospital and veterinary services, except those rendered by professionals, according to the National Internal Revenue Code.

Angara reaffirmed the Filipino tradition of caring for senior citizens for the years of work that they have done, and for their valuable contribution to nation-building.

"It is only but proper to grant benefits and special privileges to our senior citizens because years ago they have contributed much to our country's productivity and prosperity, and some of them continue to do so today through social and community work," he said.

In 1988, Angara also authored the Generic Drugs Law, to ensure the adequate supply of drugs with generic names at the lowest possible cost. The law orders doctors to write the generic names of drugs in their prescriptions to give patients cheaper alternative to the branded and expensive medicines.