Retailers are seeking guidance over the proposed joint administrative order (JAO) that aims to grant an additional 5 percent discount on food and other consumer goods purchased by senior citizens.
Department of Trade and Industry (DTI) Secretary Alfredo Pascual said the DTI is poised to hold a meeting with stakeholders today to answer questions from both retailers and the general public about the JAO.
While the law has been clear about the 20 percent discount in restaurants that will be treated as tax deductions from establishments, discounts from grocery purchases of basic necessities and prime commodities (BNPCs) have no clear guidelines for retailers.
Consumer Protection Group (CPG) Assistant Secretary Amanda Nograles said over the weekend that the DTI has already wrote the Bureau of Internal Revenue (BIR) on the matter for clarity, especially to retailers.
She said the taxations matters are within the ambit of the BIR and that the DTI and CPG will defer to the BIR’s decision on this.
The discounts are accorded to purchases of BNPCs such as rice, corn, bread, meat, fish, chicken, eggs, cooking oil, sugar, vegetables, fruits, onions, garlic, and fresh and processed milk, except medical grade milk.
Manufactured products are also covered, including processed meat, sardines, and corned beef, however, medical-grade milk, premium brands of manufactured goods, cakes, and pastries are exempt from discounts.
On the other hand, there are further discounts available on basic construction supplies such as cement, hollow blocks, and electrical supplies, including light bulbs.
The DTI, together with the Department of Agriculture (DA) and Department of Energy (DOE), is holding three sets of consultations today each for the government agencies the morning, and 2 for retailers and the public, separately, in the afternoon, to aid further revisions in the proposed JAO.
Meanwhile, the DTI’s CPG reminds grocery stores, supermarkets and shops observe the mandatory 5 percent discount to persons with disabilities (PWD).
Under JAO No. 17-02, products like fresh fruits, potable water in bottles and containers, noodles, household liquefied petroleum gas, kerosene, vinegar, soy sauce, bath soap, construction materials like cement and hollow blocks, livestock and fishery feeds are included as basic necessities and prime commodities.
Business establishments are also reminded that under the JAO No. 17, the 5 percent discount for PWD is separate and distinct from the 20 percent discount provided under Republic Act 10754, “An Act Expanding the Benefits and Privileges of Persons with Disabilities”.
However, beneficiaries are reminded that if the consumer is both a PWD and a senior citizen, he/she may only avail of the 5 percent additional discount from only one category.
The amount of purchase should also not exceed P1,300 per person per week. The discount may be availed from retailers such as supermarkets, groceries, convenience and mini-convenience stores except stalls in food courts, food vendors and sari-stores with a capitalization of less than P100,000.