Seniors’ 20% discount on promos
On my recent trip to Manila, my messenger bought my ticket from PAL at the promo rate of P4,649 or a promo discount of P390 from the regular rate of P5,039.
If he had time to compute the 20-percent discount granted by law to senior citizens, my messenger would have chosen the published rate of P5,039, which would have been less P1,007.80 (20-percent discount), and he would have paid P4,031.20, a difference of P617.80 in my favor.
The trouble with Republic Act No. 9994, which amended RA 7432, is that it requires the senior citizen to choose the discount more favorable to him. This added an unnecessary burden to senior citizens who generally are unable to make mental calculations on the spot.
Originally, RA 7432 simply requires that the 20-percent discount for senior citizens be based on the transportation companies’ published rates. In the implementing rules and regulations, the “promo rate” is required to be the basis of the discount, being the published rate.
I suggest that RA 9994 be re-amended to restore the simple requirement that fare for air and sea transportation be subject to the 20-percent discount and VAT exemption. I think some transportation companies had the requirement sneaked into the law not realizing that whether big or small, the discount is allowed as a tax deduction anyway. Unless they do not pay income tax at all.
—AMADO F. CABAERO,
