Senator Win Gatchalian calls for a Senate inquiry into tax leakages caused by the rampant use of fake Person With Disability (PWD) identification cards to illegally avail of discounts and Value-Added Tax exemptions due only to PWDs.
Gatchalian’s Senate Resolution 1239 called attention to reports-peddlers of fake PWD IDs about Bacolod City and other regions nationwide. For example, there was a cluster of over 100 counterfeit PWD IDs recently discovered in Bacolod City, bearing the wrong kind of paper, jumbled PWD numbers, and not-so-standardized disabilities.
Environmental health officers in Cebu City seized at least seven fake PWD IDs amid reports of an increase in counterfeit cards. The names on the city’s verified list of disabled persons did not match.
Gatchalian stressed that the use of fake PWD IDs undermines social programs for legitimate PWDs on the LGU’s financial assistance and other incentives fashioned to look after their welfare.
Restaurant owners lament losses due to the use of fake PWD IDs. These fake cards allow the bearer of the 20% discount and VAT exemption meant for People With Disabilities. A number of restaurant operators also took note of an increase in the share of income that PWD cardholders affected, going up from 5% to 30% in recent years.
Under Republic Act 10754, otherwise titled the Act Expanding Beneficial Conditions and Privileges of Persons With Disability, establishments are allowed to simply offset losses incurred from providing discounts to persons with disabilities with a deduction from taxes due, and this is done basing the claim on the net cost of supplies or services offered.
He aims to address this issue to protect the legitimate PWD beneficiary, secure businesses from fraudulent dealings, and avert any further losses in tax revenue.
