Underprivileged Students Discount Act

Senate Tit Office of the Bereas TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) AUG -6 P4:24 First Regular Session SENATE RECEIVED B: S. No. 1063 Introduced by Senator Jinggoy Ejercito Estrada AN ACT GRANTING FIVE PERCENT (5%) DISCOUNT ON BASIC AND EDUCATION SERVICES TO UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS EXPLANATORY NOTE Education is still one of the most effective ways to improve the lives of Filipino families and end the nation's poverty cycle. Section 2, Article XIV of the 1987 Constitution mandates the State to "Establish and maintain a system of scholarship grants, student loan programs, subsidies, and other incentives which shall be available to deserving students in both public and private schools, especially to the under- privileged." Many students from low-income families still struggle to meet the daily demands of schooling, even in the face of existing laws and programs that provide educational assistance. The cost of tuition, school supplies, food, sometimes medicine, and even devices needed for learning places an enormous burden on families with limited resources. This leads to students dropping out, underperforming, and even juggling multiple responsibilities just to survive one academic school year. There is a divide on what existing laws provide and what students on the ground actually need to thrive in their education.

This proposed measure seeks to ease the burden on students by providing a five percent (5% mandatory discount on essential services such as food, medicine, tuition, books, supplies, and electronic devices needed for learning. These will be extended to all qualified underprivileged students across all levels of education, including those in technical-vocational institutions. This measure is not just about discounts but is about recognizing education as a right and ensuring that most costs associated with it do not become a barrier for the poor and deserving. A similar measure was previously filed by Senator Juan Edgardo "Sonny" Angara during the Nineteenth Congress. In view of the foregoing, the immediate passage of this bill is earnestly sought. isnt 1 /JINGGOY EJERCITO ESTRADA

Splate Office of the bauetery TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG -6 P4:24 SENATE RECEIVED DI. S. No. 1063 Introduced by Senator Jinggoy Ejercito Estrada AN ACT GRANTING FIVE PERCENT (5%) DISCOUNT ON BASIC AND EDUCATION SERVICES TO UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE ENROLLED IN TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Underprivileged

2 Students' Discount Act".

Sec. 2. Declaration of State Policy. - It is the policy of the State to prioritize

quality education and take appropriate steps to make such education accessible to all.

Sec. 3. Definition of Terms. - As used in this Act, the following terms shall

mean: a) Basic Services refer to basic necessities such as food for snacks and meals and medicines; b) Discounts refer to an amount deducted or counted off from the cost of goods under basic services and from fees to be collected on education services; c) Education Services refer to education-related expenditures such as tuition, miscellaneous and other school fees, books, and school supplies; and d) Underprivileged Student refers to a Filipino student enrolled in basic education, post-secondary non-degree technical-vocational (Tech-Voc)

courses, and those enrolled in bachelor's Degree Programs at the college level, whose parents have a gross annual income of not more than Two hundred fifty thousand pesos (P250,000.00), subject to review by the National Economic and Development Authority (NEDA) every three years: Provided, That a Filipino student who opts to take part-time jobs to subsidize the student's education and whose income combined with the annual gross income of the student's parents do not exceed Two hundred fifty thousand pesos (P250,000.00), subject to review by the NEDA every three (3) years, is deemed an Underprivileged Student.

Sec. 4. Discounts for Underprivileged Students. - Underprivileged students shall

11 be entitied to the following: a) On Food Establishments - A five percent (5%) discount shall be granted to underprivileged students by food establishments such as food chains, canteens and restaurants anywhere in the country: Provided, That private food establishments may claim the cost as allowable tax deduction from the gross income in the computation of the income tax in accordance with the provisions of the National Internal Revenue Code (NIRC) of 1997, as amended; b) On Medicines - A five percent (5%) discount shall be granted to underprivileged students by pharmacies or drug stores anywhere in the country: Provided, That these pharmacies or drug stores may claim the cost as allowable tax deduction from the gross income in the computation of the income tax in accordance with the provisions of the NIRC of 1997, as amended; c) On Textbooks and School Supplies - A five percent (5%) discount shall be granted to underprivileged students by establishments anywhere in the country that sell reference books and school supplies: Provided, That these establishments may claim the cost as allowable tax deduction from the gross income in the computation of the income tax in accordance with the provisions of the NIRC of 1997, as amended; d) On Prescribed Electronic Devices for purposes of Online/Distance Learning - A five percent (5%) discount shall be granted to underprivileged students

by establishments anywhere in the country that sell electronic devices including but not limited to computers, tablets and other electronic devices which may hereinafter be prescribed: Provided, That these establishments may claim the cost as allowable tax deduction from the gross income in the computation of the income tax in accordance with the provisions of the NIRC of 1997, as amended; and e) On Tuition Fees, Miscellaneous, and Other School Fees - A five percent (5%) discount shall be granted to underprivileged students by public and private .9 schools where they are enrolled in, without prejudice to their right to avail themselves of other educational assistance given by the school and the government, such as those provided under Republic Act No. 6728, as amended by Republic Act No. 8545 or the "Government Assistance to Students and Teachers in Private Education (EGASTPE)", Republic Act No. 9442 or the law amending the "Magna Carta for the Disabled", Republic Act No. 10687 or the "Unified Student Financial Assistance System for Tertiary Education (UniFAST)" , and Republic Act No. 10931 or the "Universal Access to Quality Tertiary Education (UAQTE) Act": Provided, That the schools may claim the cost as allowable tax deduction from the gross income in the computation of the income tax in accordance with the provisions of the NIRC of 1997, as amended. f) On Museums, Theaters, and Cultural Events - A five percent (5%) discount shall be granted to underprivileged students on entrance fees to museums, theaters, and cultural events sanctioned by the National Commission on Culture and Arts anywhere in the country: Provided, That private museums, theaters and producers of cultural events may claim the cost as allowable tax deduction from the gross income in the computation of the income tax in accordance with the provisions of the NIRC of 1997, as amended.

Sec. 5. Limitations. - The Department of Education (DepEd), Technical

Education and Skills Development Authority (TESDA), and Commission on Higher Education (CHED) may identify grounds for disqualification of students in availing the aforementioned discounts, in accordance with the implementing rules and regulations

1 of this Act: Provided, That these grounds will not defeat the purpose of liberally 2 granting such discounts to underprivileged students.

Sec. 6. Roles of DepEd and CHED. - Qualified primary and secondary students,

4 and tertiary or college beneficiaries, shall be determined by DepEd and CHED, respectively. These agencies shall have the following functions: a) To plan, implement, and monitor yearly work programs, evaluate and submit annual reports in pursuance to the objectives of this Act; b) To screen applicants, receive documentary proof, and identify who are the eligible underprivileged primary, secondary and college students based on the provisions of this Act; c) To closely coordinate with the NEDA in determining the income brackets of Filipino families for the purpose of identifying underprivileged primary, secondary and college students, respectively; d) To issue identification cards which shall be valid anywhere in the country as proof of the eligibility of the underprivileged primary, secondary and college students to avail themselves of the discounts; e) To maintain and regularly update, on a quarterly basis, the list of underprivileged primary, secondary, and college students who avail themselves of the discounts; f) To cancel the identification cards issued for those disqualified under Section 5 of this Act; g) To provide information to the affected establishments under Section 4 of this Act for any questions regarding the eligibility of any underprivileged primary, secondary and college students claiming the discounts through the DepEd and CHED websites, respectively; h) To monitor the extent of implementation of this Act and to coordinate with the concerned agencies regarding the imposition of penalties on violators of this Act; and i) To perform such other functions as may be determined by the DepEd Secretary and CHED Chairperson.

Sec. 7. Role of TESDA. - The TESDA shall be in charge of determining the

2 qualified post-secondary tech-voc beneficiaries under this Act through its Office of 3 Technical-Vocational Education and Training (TVET) Systems Development Office 4 (TSDO). The TESDA Director-General shall include in the regular functions of the TSDO 5 the following additional functions: a) To plan, implement, and monitor work programs, evaluate and submit annual reports in pursuance of the objectives of this Act; b) To screen applicants, receive documentary proof, and identify who are the eligible underprivileged post-secondary students based on the provisions of this Act; c) To closely coordinate with the NEDA in determining the income brackets of Filipino families for the purpose of identifying underprivileged post- secondary students; d) To issue identification cards which shall be valid anywhere in the country as proof of the eligibility of the underprivileged post-secondary students to avail themselves of the discounts; e) To maintain and regularly update, on a quarterly basis, the list of underprivileged post-secondary students who avail themselves of the discounts and to review, evaluate and assess their academic standing; f) To cancel the identification cards issued for those disqualified under Section 5 of this Act; g) To provide information to the affected establishments under Section 4 of this Act for any questions regarding the eligibility of any underprivileged post- secondary students claiming the discounts through the TESDA website; h) To monitor the extent of implementation of this Act and to coordinate with the concerned agencies regarding the imposition of penalties on violators of this Act; and i) To perform such other functions as may be determined by the TESDA Director-General in the implementation of this Act.

Sec. 8. Tax Incentives. - Discounts granted by establishments to

underprivileged students under this Act shall be treated as allowable deduction from

1 the gross income in the computation of the income tax, in accordance with the 2 provisions of NIRC of 1997, as amended.

Sec. 9. Penalties. - The first violation of any provisions of this Act shall cause

4 the suspension of the license to operate or the business permit of the establishment 5 or person concerned for not less than one (1) week but not more than four (4) weeks 6 and a fine of not less than Twenty thousand pesos (P20,000.00) but not more than 7 Fifty thousand pesos (P50,000.00). The second violation of any provisions of this Act shall cause the suspension of the license to operate or the business permit of the establishment or the person 10 concerned for not less than four (4) weeks and a fine of not less than Fifty Thousand Pesos (P50,000.00), but not exceeding Two Hundred Fifty Thousand Pesos 12 (P250,000.00): Provided, however, That the procedure of notice and hearing shall have been complied with prior to the imposition of the said penalties. If the offender is a corporation, organization or any similar entity, the officers 15 thereof shall suffer the same penalty imposed on any person found violating this Act.

Sec. 10. Enforcement. - Pursuant hereto, the DepEd, DTI, DOH, and local

17 government units (LCDs), in coordination with the CHED and TESDA, shall have the mandate to implement the provisions of this Act. After filing of an appropriate 19 complaint, and after due notice and hearing, the proper authorities may also cause 20 the cancellation or revocation of the business permit, permit to operate, franchise and other similar privileges granted to any business entity that fails to abide by the provisions of this Act.

Sec. 11. Implementing Clause. - The DepEd, TESDA, and CHED, in coordination

with the NEDA, the Department of Social Welfare and Development (DSWD), the Department of Health (DOH), the Department of Trade and Industry (DTI), Department of Finance (DOF), and such other agencies concerned with the establishments which may be affected by this Act, shall issue the implementing rules and regulations to carry out the objectives of this Act within thirty (30) days after this law takes effect.

Sec. 12. Separability Clause. - If any provision or part thereof is held invalid or

unconstitutional, the other sections or provisions thereof shall not be affected thereby and shall remain in force and effect.

Sec. 13. Repealing Clause. - All laws, executive orders, decrees, instructions,

2 rules and regulations contrary to or inconsistent with any provision of this Act are hereby amended, repealed or modified accordingly.

Sec. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

5 publication in the Official Gazette or in any newspaper of the general circulation. Approved,