DTI ordered to raise seniors’ grocery discount to P125 per week

[Lee]

Quote

 

MANILA, Philippines — Two House panels have directed the Department of Trade and Industry (DTI) to increase the discounts given to senior citizens’ grocery purchases from P65 per week to P125 per week.

At the hearing of the House committee on ways and means and the committee on senior citizens, Albay 2nd District Rep. Joey Salceda suggested the P125 per week figure, given that the maximum discountable amount set 20 years ago — P1,300 worth of grocery purchases per week — is now worth P2,526.

A five percent discount is given to grocery purchases made by senior citizens, but the maximum discountable amount is P1,300, generating a weekly discount worth P65.  Since five percent of P2,526 is P126.31, Salceda suggested a P125 discount per week.

“There is a direct instruction from the Speaker to really adjust already the weekly or the monthly booklet, with or without booklet, so based on food inflation, since the P1,300 was established — P1,300 is now worth P2,526 using food inflation, which means that the weekly (discount) will have to be P126.31,” Salceda, head of the ways and means panel, said.

“If you just use the headline inflation, including gas, et cetera, it should be P2,089 per week, that is P104.45.  Therefore, as the committee chair on ways and means, I suggest P125 per week [discount],” he added.

Agusan del Sur 1st District Rep. Alfelito Bascug then placed Salceda’s proposal into a motion, as no law is needed to change the maximum discount since it was implemented through an administrative order.

 

DTI ordered to raise seniors’ grocery discount to P125 per week (msn.com)

[Lee]

Two different articles, both seemingly based on similar data concluding with different monetary outcomes for seniors. IDK

 

Lawmakers call for P500 monthly discount on basic goods for the elderly

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House Ways and Means Committee Chairperson Joey Salceda on Tuesday called on relevant government agencies to draft an administrative order setting a P500 monthly discount on basic goods for senior citizens.

Salceda said such an amount was arrived at in the aftermath of a joint panel hearing with the Department of Trade and Industry (DTI) and the Department of Agriculture (DA).

“Using food inflation rates, we determined that by now the total value of the discount should have been adjusted to around P126.31 per week. So, adjustment to P125 is more or less where we should be by now,” Salceda said.

The joint committee, Salceda said, determined the discount by choosing between either consumer price index levels or food inflation from 2010 to 2024.

“The food inflation rate makes better sense since these are basic goods. At least, this is an empirically made policy decision rather than setting an arbitrary adjustment,” Salceda added.

The Expanded Senior Citizens Act, currently promulgated through DTI-DA Administrative Order No. 10-02, provides that senior citizens are entitled to a special discount of 5% of the regular retail price, without exemption from value-added tax, of basic necessities.

The total value of goods discounted is capped at P1,300 per week.

The policy decision we have made as a society is that we will all distribute the burden amongst ourselves, as sellers will likely pass these costs on to other consumers,” Salceda added

 

Lawmakers call for P500 monthly discount on basic goods for the elderly (msn.com)

[OnMyWay]

So all that waiting behind seniors with their booklets is only for 5% on some groceries, with a cap?  Kind of a joke if you ask me.

[Lee]

7 hours ago, OnMyWay said:

So all that waiting behind seniors with their booklets is only for 5% on some groceries, with a cap?

Correct. The discount is also limited to 65P if you spend 1300P.

So who makes up for this lost revenue---consumers do as retailers simply mark items up elsewhere to recoup the 5 %.

[OnMyWay]

2 hours ago, Lee said:

Correct. The discount is also limited to 65P if you spend 1300P.

So who makes up for this lost revenue---consumers do as retailers simply mark items up elsewhere to recoup the 5 %.

I assume the government reimburses the retailer, thus the tedious logging???

[hk blues]

22 hours ago, OnMyWay said:

So all that waiting behind seniors with their booklets is only for 5% on some groceries, with a cap?  Kind of a joke if you ask me.

I've seen folk go through the process for a discount on a 90php drink in a food court.  Never underestimate the lengths some go to to save a few measly pesos.  

[Jack Peterson]

1 minute ago, hk blues said:

I've seen folk go through the process for a discount on a 90php drink in a food court.  Never underestimate the lengths some go to to save a few measly pesos.  

 I agree HK to a degree but to a Local Senior a fixed income has a different meaning, more than it does to us

[hk blues]

Just now, Jack Peterson said:

 I agree HK to a degree but to a Local Senior a fixed income has a different meaning, more than it does to us

I did consider that before posting, Jack, but I'm not sure many of the really needy are buying 90php drinks in SM foodcourt.  That said, your point stands in principal. .  

 

 

[OnMyWay]

41 minutes ago, Jack Peterson said:

 I agree HK to a degree but to a Local Senior a fixed income has a different meaning, more than it does to us

Actually my first remark was meant to convey that even for a poor senior, p65 a week is a joke.  The proposed p125 a week is still a joke.  Sure, for somebody dirt poor it does help a tiny bit.  Very tiny bit.

(Side note:  my step-daughter wants to apply at McDonalds.  She already found out that the pay is 62 pesos per hour.  Almost as much as a senior is allowed to save on groceries for a week.)

The other part of my remark about waiting behind seniors who are availing the discount is more of a local thing for me.  I do most of my shopping at Royal Duty Free or similar stores inside the freeport.  It is rare that you get poor people shopping there  Most of the Filipino's shopping are mid to upper class, so saving 65 pesos a week is a very very minor savings for them, but they still avail it.

[scott h]

11 hours ago, OnMyWay said:

It is rare that you get poor people shopping there 

Agreed, OMW, in fact the senior discount is probably the most abused benefit around. I walk through the wet market daily, I have never seen any senior ask for nor receive a senior discount and that is where poor seniors do their shopping. Now where it DOES benifiet the is in medications. 

On 2/14/2024 at 2:30 PM, OnMyWay said:

I assume the government reimburses the retailer

That is correct, I know a Canadian of Greek ancestry who runs a very successful chain of Italian (go figure lol) restaurants, who I asked about this, they gather up the receipts (quarterly if memory serves) turn them into the government for full reimbursement. So in the end all taxpayers (seniors included) end up paying for the discount.

Where I have seen the discount most used is in restaurants, my wife included. She and a bunch of her upper middle class batchmates meet at a nice restaurant and WHAMO the poor waiter is presented with a dozen or more senior ID's. 

Recall the issue about the senior winning in court over a hotel not giving the discount while A) she could afford a good hotel and B) spend the money for a lawyer did she really NEED a discount?

In a perfect world the senior discount would be means tested, but since political elections are really popularity contests and not issue driven, it will most likely not change.