Benefiting from the expanded senior citizen act RA9994
Benefiting from the expanded senior citizen act or RA9994
After our weekly jogging at Rizal Park, my family and I went to the nearby fast food chain and ordered something to eat. Knowing that the law had been implemented last Tuesday, I was delighted to discover that the fast food chain did comply with the Expanded Senior Citizen Act or Republic Act (RA) 9994 (some businesses can really be unscrupulous).
Under this law, senior citizens are exempted from the 12 percent Expanded Value Added Tax (EVAT). Before, the 20 percent discount was applied on the retail price of the commodity being sold which in this case was a breakfast value meal.
To appreciate the discount more, let us make a comparison.
Before (no expanded senior citizen act)
Retail price of longganisa meal P80.00
(VAT inclusive) (8.57)
Less 20 percent senior citizen discount 16.00
Amount due P64.00
Now (with expanded senior citizen act)
Retail price of longganisa meal P80.00
Less Vat 8.57
Amount for discount P71.43
Less 20% discount 14.29
Amount due 57.44
Total discount = P22.56
The discount is actually P6.56 more than before. For senior citizens who regularly dine out, this could accumulate huge savings for them!
The government is stricter with the implementation this time. And knowing there will be some who will take advantage of the discount, there are penalties for those who will abuse the benefit. Hey our government stands to lose billions in revenues so it’s just right that they do all necessary things to prevent unwarranted and misguided usage.
Three cheers for the Angara!
To read more about the Expanded Senior Citizen Act, click on the link. http://thepoc.net/thepoc-features/mukhang-pera/mukhang-pera-features/7501-understanding-the-expanded-senior-citizen-act.html
