I have a medical condition, but it doesn’t qualify me as a Person With Disability (PWD). Nor am I a senior citizen — although I’m getting there. Frankly, I look forward to the day I become a “dual” citizen, given all the “privileges” that come with it.
The thing is, by the time I turn 60, there may already be changes in the law governing the “discounts” currently enjoyed by seniors and PWDs. The restaurant industry is already up in arms over the widespread abuse enabled by the proliferation of fake PWD IDs.
I wouldn’t be surprised if the pharmaceutical and retail industries follow suit. They, too, are taking a hit. Seniors and PWDs enjoy discounts on public transportation and medical services, and I am certain that not all who avail themselves of these benefits are legitimately entitled to them. Even funeral services offer discounts to seniors and PWDs.
Resto PH, an association of restaurant owners in the Philippines, has publicly voiced its concern over fake PWD IDs. It’s easy enough to verify a senior citizen’s eligibility — a government-issued ID or even physical appearance can confirm whether someone is over 60. But for PWDs, verification is trickier.
Resto PH’s complaint is clear: “Many people don’t realize that it’s not the government covering the 20% discount — it’s the businesses themselves. Every fraudulent discount comes directly out of a restaurant’s pocket, cutting into already thin margins.
“For restaurants, especially small and family-run ones, this isn’t just an inconvenience — it’s a financial hit that can mean the difference between survival and closure,” it added. “This isn’t just about lost revenue; it affects employees, food quality, and even menu prices for honest customers.”
Obviously, this problem won’t be easy to solve. The issuance of PWD cards is decentralized, with over 1,600 cities and municipalities nationwide, each with its own Persons with Disability Affairs Office or Social Welfare and Development Office authorized to issue PWD IDs.
Unsurprisingly, the Bureau of Internal Revenue (BIR) has entered the fray, claiming that the use of fake PWD IDs amounts to tax evasion, leading to a revenue loss of approximately P88.2 billion in 2023. In addition to the 20% discount, purchases by PWDs are also exempt from the 12% VAT.
If my calculations are correct, the 20% discount and VAT exemption granted to seniors and PWDs are extremely generous benefits unique to the Philippines. I am not aware of any other country in the world that offers similar privileges.
Singapore has its “Pioneer Generation” card, which provides medical benefits to people born in 1949 or earlier. In the US, public transportation systems that receive federal funding offer discounted fares to those aged 65 and over and to PWDs, but only during off-peak hours. Some local governments provide property tax reductions for eligible PWD homeowners.
In the UK, the English National Concessionary Travel Scheme grants free off-peak local bus travel to older and disabled residents. PWDs can also avail themselves of council tax reductions, free prescriptions, and discounted rail travel.
During a casual conversation, a restaurant owner shared with me her struggles with fake PWD IDs. Not too long ago, she caught nine customers trying to pass off fake IDs as legitimate. She mentioned an app that allowed her to verify the authenticity of PWD IDs. However, she was uncertain if the app could access updated data.
She also revealed how some restaurant cashiers abuse the system by keeping copies of seniors’ and PWDs’ IDs on file. These unscrupulous cashiers then log regular sales as discounted sales, using details from real seniors and PWDs, and pocket the difference between the cash collection and the official sales tally.
In short, restaurant owners are fighting fraud both externally and internally. On top of that, government inspectors conduct random audits and demand up-to-date records of regular and discounted transactions. Establishments that fail to maintain proper documentation face daily fines.
Perhaps in the near future, technology will help curb these abuses. During my travels, I have seen how small businesses in other countries have leveraged technology to streamline operations and minimize fraud.
For instance, many small restaurants in Japan operate with just one cook and one server. Customers place their orders and pay using a kiosk or vending machine at the front of the store. The machine prints a ticket indicating the order, which the customer hands to the server, who then relays it to the kitchen. Cash never changes hands.
A similar system is used in convenience stores, where attendants only scan merchandise. A screen facing the customer displays the total bill and purchased items. Customers then pay directly to the machine, either in cash or electronically. The register automatically counts the cash and issues change, preventing attendants from handling money.
In the Philippines, a comparable system could be implemented. Self-service kiosks could require the serial number of a senior or PWD card, which would then be validated instantaneously through a national online database. This would automatically reject fraudulent entries and prevent abuse.
Government intervention should focus on creating and maintaining an updated national database of all senior and PWD cards issued by local governments. This database must be regularly updated and made accessible through mobile apps and online platforms, enabling establishments to verify the legitimacy of senior and PWD IDs in real time.
This initiative should be considered part of tax administration reform. An P88.2-billion tax loss in 2023 is more than enough incentive for the government to implement an efficient and effective system to monitor and verify senior and PWD cards used for discounts and tax exemptions.
Ultimately, the goal is not to remove the benefits afforded to seniors and PWDs but to ensure that they are granted only to those who truly qualify. Without proper safeguards, businesses will continue to suffer losses, tax revenues will keep dwindling, and the integrity of the system will remain compromised.
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council
