P88 BILLION IN TAXES LOST BY THE GOVERNMENT DUE TO FAKE PWD IDS

The government is losing billions in tax revenues due to the proliferation and unscrupulous use of fake person with disability identification cards (Photo courtesy of Philippine Daily Inquirer)

Around P88.2 billion worth of taxes has been lost by the government in year 2023 because of fake Persons with Disabilities (PWD) IDs, to take advantage of the discount and abuse the privileges, Senator Sherwin Gatchalian said.

According to Gatchalian, there are 8.5 million Filipinos using fake PWD IDs in the country, while there are only 1.8 million "legitimate" PWDs. In terms of discounts being given by establishments, the amount already reached P166 billion.

In 2023, a total of P42.3 billion discounts were legitimately granted to PWDs, while P166.1 billion discounts were given to fake PWDs card holders. "These fake PWD IDs are causing a lot of economic damage in terms of foregone revenues and unqualified discounts."

Under Republic Act No. 10754, PWDs are entitled to 12% value-added tax (VAT) exemption and a 20% discount on certain goods and services, including restaurant purchases. 

Meanwhile, Restaurant Owners of the Philippines (Resto PH) president Eric Teng said that they have detected an increase from 5% to 25% of their sales affected by PWD discounts in the past two years.

Teng said, some fake IDs were being sold online for as little as P500, and if there is a booklet P1500. Some individuals just print their fake IDs at home. He added that fake PWD IDs usually have several discrepancies including wrong design, duplicate serial numbers, incompatible city codes, or even the wrong mayor's name and signature on the fake IDs.

Gatchalian criticized individuals who fraudulently claim disability to take advantage of the 32 percent discount given to PWDs. "First of all, those using fake PWDs should feel guilty because you are pretending to have a disability that you don't have.”

“This is not just a fake ID problem, but an economic problem, because we are losing revenue from this. Businesses are being burdened with giving discounts to people who don’t deserve those discounts,” he added.

The senator said the Department of Social Welfare and Development is about to roll out a new technological initiative in early 2025 aimed at curbing the rise of fake Persons with Disability (PWD) IDs in the Philippines with plans to implement a central verification system for all PWD cards.

Source: Philippine Star 

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