By Mayan Sangil, PRA
The Philippine Retailers Association (PRA) has issued a position paper in response to the drafted DTI-DA-DOE Joint Administrative Order concerning revised regulations for granting special discounts to Senior Citizens (SC) and Persons with Disabilities (PWD) on the purchase of basic necessities and prime commodities. While acknowledging the invaluable contributions of SCs and PWDs to society, the PRA has raised concerns regarding the economic sustainability of mandating discounts solely on establishments.
In the position paper, the PRA underscores the importance of striking a balance between social welfare and economic sustainability. The current system, as outlined in the Expanded Senior Citizen Act of 2010, places the entire financial responsibility of discounts on establishments, particularly affecting small and medium-sized enterprises (SMEs) with thin profit margins. This creates challenges in absorbing the costs associated with mandated discounts and may lead to adverse effects on businesses, including employment and overall economic growth.
The PRA emphasizes its full support for the objectives of government welfare programs benefiting SCs and PWDs, while stressing the necessity for a fair and sustainable funding mechanism. The association advocates for government-supported funding mechanisms, such as direct appropriations or tax credits, to alleviate the financial burden on establishments. These mechanisms would ensure the continued provision of discounts without compromising the economic sustainability of businesses.
Reiterating its commitment to supporting initiatives promoting the welfare and inclusivity of SCs and PWDs, the PRA emphasizes the importance of implementing such initiatives in a manner that is fair and sustainable for all stakeholders involved. The association urges the government to consider its position and recommendations and to collaborate towards solutions that uphold both social responsibility and economic viability.
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