PWD’s exemption from paying VAT now in effect

The new law exempting persons with disabilities (PWDs) from paying the 12-percent Value Added Tax (VAT) took effect on Friday in time for the upcoming Christmas holidays.

Then President Benigno Aquino III signed into law the RA 10754 or An Act Expanding the Benefits and Privileges of PWDs on March 30 but its implementing rules and regulations was approved only on December 1.

The PWD's VAT exemption is on top of the 20-percent discount they enjoy on goods and services by virtue of Magna Carta for Disabled Persons.

"Dati na pong may 20 percent discount ang PWDs dun sa Magna Carta sa PWD. Ngayon po ang dagdag dito ay VAT-exempted na sila so 12 percent. So, all in all, 32 percent," said Francis Villabrosa, media officer at the Department of Social Welfare and Development.

Apart from the 20 percent discount, RA 10754 also mandates VAT exemption on bills from hotels and restaurants, theaters and concerts, medicines, and some medical and dental services both in private and public hospitals.

"Meron pang unique features itong bagong batas. Halimbawa riyan para sa di makakain ng normal na food, mga pagkain na tinatawag natin na for special medical purposes, kasabay na rin po 'yun sa magkakaroon ng discount. Kahit herbs na indicated for therapeutic use bahagi na rin po siya," Villabrosa said.

PWDs are also exempted from VAT on fares for domestic air and sea travel and for land transportation travel such as buses, jeepneys, taxis, and public railways like Light Rail Transit (LRT), Metro Rail Transit, and Philippine National Railways (PNR).

Also under the law, establishments shall put signages indicating PWDs' benefits and priveleges.

"Ang panawagan lang po namin sa publiko, igalang ang karapatan ng persons with disabilities. Bahagi po ito ng pagtanaw ng pantay na karapatan ng mga tao," Villabrosa said. —John Ted Cordero/NB, GMA News