A lawmaker has asked the House Committee on Small Business and Entrepreneurship Development to conduct an inquiry on how Republic Act 9994 or the "Expanded Senior Citizens Act of 2010" affects the small and medium-sized drugstores in the country, a press release from Congress said.

Rep. Teddy Casiño (Party-list, Bayan Muna), author of House Resolution 2099, urged the House body to help small and medium-sized drugstores comply with the mandated discount for senior citizens and at the same time ensure their viability as a business enterprise.

"This is an urgent matter, lest the small drug retailers, who number in thousands disappear, leaving a large vacuum in the drug and medical supply claim and leading to the loss of jobs of thousands of employees," Casiño said.

He said Republic Act No. 7432, or the Senior Citizens Act ,was passed into law in 1992 providing a 20 percent discount on drugs bought by senior citizens whose annual income falls below P60,000.

To compensate drugstores, claim reimbursement is supposed to be given in the form of tax credit, the press release said.

Casiño said the Drugstores Association of the Philippines has questioned the implementing rules and regulations issued by the Bureau of Internal Revenue because it treated the tax credit provision as tax deduction only.

This was questioned by Mercury Drug Corp. and in April 2005, its franchisee, Central Luzon Drug Corp., won the case.

"However, the DSAP said that drugstores have since hesitated to comply with the 20 percent discount," Casiño said.

He said DSAP members have been complaining that small and medium-sized drugstores cannot comply with the stringent provisions of the Senior Citizens Act.

Casiño said that, while it is the intention of Congress to provide our senior citizens free or affordable health care and medication, it should also be reconciled with the support needed by small players in the drug industry, especially if it may cost their financial ruin.

The Senior Citizens Act was expanded in 2003 as Republic Act No. 9527, removing the income cap of P60,000, replacing the tax credit provisions with tax deduction and providing for stiffer penalties including imprisonment of drugstore owners, the press release said.

This was further amended in 2010 as Republic Act 9994, effectively exempting the purchase of senior citizens from value-added tax, it added.*

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