Solons order DTI, Agri to double weekly senior discount to P125

“Using food inflation rates, we determined that by now the total value of the discount should have been adjusted to around P126.31 per week. So, adjustment to P125 is more or less where we should be by now,” Salceda, chair of the House Committee on Ways and Means, said.

At the same time, Salceda said the joint committee will draft a bill that aims “to enhance discounts for special sectors.”

The joint committee made the determination by choosing between either consumer price index levels or food inflation from 2010 to 2024.

“The food inflation rate makes better sense since these are basic goods,” Salceda said. “At least, this is an empirically made policy decision rather than setting an arbitrary adjustment.”

Under the current system, promulgated through DTI-DA Administrative Order No. 10-02, as part of Republic Act 9994 or the Expanded Senior Citizens Act, senior citizens are entitled to a special discount of five percent of the regular retail price, without exemption from value-added tax, of basic necessities.

Currently, a special discount of 5 percent on groceries bought by senior citizens exists, but it has a cap of up to P1,300 per week — which means that if purchases exceed that amount, the discount will stay at 5 percent of P1,300, which is P65.

“The DTI and the DA are so directed to adjust the rates prescribed in the administrative order,” Salceda said, following a motion from fellow committee chairs Rep. Alfelito Bascug of Agusan del Sur and Rep. Rodolfo Ordanes of Senior Citizens party-list group.

Bascug and Ordanes are the chairs of the House special committees on persons with disabilities, and on senior citizens affairs, respectively.

“This is just an administrative order, so it can be adjusted with immediate effect,” Salceda added.

Salceda also estimated that “the cost to society of these discounts is at least P31.096 billion every year, a burden shared equally among all others.”

“This is the overarching doctrine of these discounts – everyone else has a responsibility to take care of elders, simply because everyone else will become elders at some point.”

“The policy decision we have made as a society is that we will all distribute the burden amongst ourselves, as sellers will likely pass these costs on to other consumers.”

“It has an inflationary effect of around 0.04 percent, which doesn’t look like much, but the nominal value, if taken on its own, is substantial.” — Maricel Cruz