As we all know, people from different sectors, such as students, senior citizens, and persons with disabilities (PWDs), are entitled to government-legislated discounts. One of the most common is a 20% reduction in fares for students and seniors on public transportation, as well as for PWDs on essential goods and services.
However, while the idea sounds simple on paper, the actual application can sometimes become more complicated—especially for PWD cardholders, who face inconsistent implementation across establishments.
PWDs often face erratic rules when using their discount cards. Some restaurants honor the 20% discount without issue, while others limit its application to certain meals, therefore creating confusion. These inconsistent practices were exactly what Glenda Relova, Executive Director of the National Council on Disability Affairs (NCDA), had in mind when she asked for clarification on how the PWD discount and VAT exemption should be applied to food purchases.
Her request aimed to clear up whether all food and drinks bought by PWD cardholders, regardless of quantity, are eligible for the discount, as long as the items are for the cardholder’s personal consumption.
DOJ: "20% Discount For PWDs Applies To Group Meals"
ICYDK, the Department of Justice (DOJ) clarified the proper application of the 20% PWD discount, particularly when it comes to group meals. According to the Republic Act (RA) 10754, all PWDs are entitled to a 20% discount and VAT exemption "on the sale of certain goods and services" for the "exclusive use, enjoyment, or availment of persons with disability."
"(I)n purchase of a group meal which is ideally for food sharing, if it can be clearly determined that it was for the exclusive use, enjoyment, or availment of only one person who is a PWD in dine-in transactions, then the 20 percent discount and VAT exemption should apply to the total amount of the food purchased," the DOJ said.
Keyword: "Exclusive."
According to the DOJ, the discount and VAT exemption apply in full if all the food purchased is evidently only for the PWD's consumption—such as for dine-in settings. This provision aims to ensure fair use while preventing abuse of the benefit under RA 10754, which expands the privileges of PWDs.
In Cases Of Food Deliveries...
Key Phrase: "most expensive single-serving meal and a beverage combination."
If you're ordering food online or via delivery and opt for a group meal, different rules apply when it comes to discounts for Persons with Disabilities (PWDs). The Bureau of Internal Revenue (BIR), through Memorandum Circular No. 71-2022, clarified that the PWD discount will only apply to the "most expensive single-serving meal and a beverage combination" in the order. This ensures a fair approach to managing discounts for fast-food chains and other quick-service restaurants, where large orders can often include meals for multiple individuals.
