President Gloria Macapagal Arroyo signed into law last February 16, 2010, the Expanded Senior Citizens Act of 2010 or Republic Act No. 9994 that exempts the country’s estimated 4.6 million senior citizens from paying the 12% Expanded Value-added Tax (EVAT) on basic purchases and other essential goods and services.The RA enables senior citizens to enjoy fully the 20-percent discount on consumer goods and services provided under a 2003 legislation known as RA 7342, otherwise known as “An Act to Maximize the Contributions of Senior Citizens to Nation Building, Grant Benefits and Special Privileges, and for Other Purposes.”

A month after the passage of the said law, the Department of Finance and the Bureau of Internal Revenue is doing its best to come up with the Implementing Rules and Regulations (IRR) to implement said RA on Senior Citizens.

In the meantime, Commissioner Tan-Torres stressed that “the VAT exemption on senior citizens cannot be applied until the said IRR is released.”