The Supreme Court has ruled that senior citizens cannot claim an additional 20% discount on top of existing promotional or negotiated discounts, following a legal dispute involving a Bacolod City hotel that had already granted guests a discounted room rate.
In its Oct. 14 ruling, the Supreme Court En Banc overturned the conviction of the hotel’s general manager, finding that the senior citizen guests had already received a 20% discount through a negotiated rate. The establishment was therefore not required to grant another 20% discount.
The Court clarified that senior citizens purchasing eligible goods or services at promotional prices may choose between the promotional discount and the statutory 20% senior citizen discount, whichever provides greater savings. Both discounts cannot be applied to the same purchase.
The decision is consistent with Republic Act No. 9994, or the Expanded Senior Citizens Act of 2010, and its implementing regulations, which allow senior citizens to avail themselves of the more favorable discount when promotional offers are available.
The Court emphasized that while the law aims to protect and support senior citizens, its implementation must also be fair and reasonable to businesses required to provide these benefits.
“The State’s pursuit of public welfare cannot be allowed to impose undue or confiscatory burdens on private establishments, whose continued viability is essential to the long-term effectiveness of the law,” the Supreme Court said.
Under the Philippine Expanded Senior Citizens Act (RA 9994), senior citizens are entitled to a 20% discount and VAT exemption, when applicable, on medicines and medical supplies, private medical/dental services, domestic transportation, hotel and restaurant services, recreational facilities, entertainment admission fees, and funeral/burial services.
The discount generally applies only to goods and services for the exclusive use and enjoyment of the senior citizen, upon presentation of a valid Senior Citizen ID.
