The Bureau of Internal Revenue made it clear that the Republic Act 9994, also known as the Expanded Senior Citizens Act of 2010, never granted tax credits to pharmacies and boticas but only tax deductions for senior citizens discounts.
They also made it clear that there is no conflict or dilemma or what so ever with the Republic Act 9994 and the BIR Implementing Rules and Regulations regarding the said 20 percent discounts to senior citizens.
According to the old law, RA 7432, Sec 4 (a), this provides the grant of 20 percent discount from all establishments relative to utilization of transportation services, hotels and similar lodging establishment, restaurants and recreation centers and purchases of medicines anywhere in the country. Provided, that private establishments may claim the cost as tax credit for the seniors.
However, during the late 2010, the Republic Act 9432 was amended by RA 9994, Section 4 of which provides that the establishment may claim the discounts granted as tax deduction based on the cost of the goods sold or services rendered.
Negros Oriental Chamber of Commerce & Industry President Ed Du is the person in charge for this confirmation that was made after a meeting with BIR officials who were invited in Thursday’s general assembly of the Drug Stores Association of the Philippines-Negros Oriental chapter.
The Drug Stores Association of the Philippines-Negros Oriental chapter (DSAP), headed by Chiqui Fabillar of Botica de San Francisco, believed that the 20 percent discount extension for the senior citizens can be recovered in terms of a tax credit with the BIR. Authored by Dumaguete vice Mayor Woodrow Maquiling Sr. that calls for the enhancement of the national law RA 9995, they would not be prompting the senior citizens to decry a proposed ordinance.
As result, the proposed ordinance was postponed until the time the BIR can appear during the next regular session to shed light on the concerns of both the senior citizens and the small players of the industry in the city and province and even the country.