Noy gives PWDs VAT exemptions

MANILA, Philippines – President Aquino signed last week Republic Act 10754 granting value-added tax (VAT) exemption benefits to persons with disabilities (PWDs).

The bill, signed on March 23, hurdled the Senate and House of Representatives bicameral conference committee last December. It expands the benefits and privileges of PWDs under RA 7277 or the Magna Carta of PWDs.

Some 1.4 million Filipinos have disabilities, results of the 2010 census showed.

The official copy of the new law was not yet available at press time.

The Department of Justice (DOJ) earlier expressed support for the proposed law, saying it did not see any legal question against the passage of Senate Bill 2890 and House Bill  1039, which both aimed to expand the benefits and privileges of PWDs.

The DOJ said the purpose of the law was consistent with Article II Section 11 of the Constitution, which requires the state to “value the dignity of every human person and guarantee full respect of human rights.”

Aside from VAT exemption, the measure also grants incentives to taxpayers who are caring for and living with a PWD, who are within the fourth civil degree of consanguinity or affinity to the taxpayer.

The new measure will align the PWD law with that of the Expanded Senior Citizens Act that provides VAT exemption on top of their 20-percent discount on particular goods and services.

The Department of Finance pegged the estimated foregone revenue at P4 billion with the implementation of the measure.