Senate Panel Investigates Tax Leakage Due to Fake PWD IDs.

Manila: The Senate Committee of Ways and Means, led by Senator Sherwin Gatchalian, held a public hearing on Thursday to tackle the issue of fake Person with Disability (PWD) identification cards and their negative impact on government revenues. The meeting focused on Senate Resolution 1239, filed by Gatchalian, which raises concerns about tax leakages from the misuse of fraudulent PWD IDs. According to Philippines News Agency, Gatchalian highlighted that the law was designed to aid the PWD sector and share the collective responsibility of supporting them. However, the 32 percent discount-comprising a 20 percent discount and VAT exemption-has become an attractive target for exploitation by unscrupulous individuals. Reports reveal that fake PWD IDs are being sold for as low as PHP300 in Bacolod City and up to PHP1,300 in Valenzuela City, creating a profitable business for those undermining the system. Gatchalian emphasized the ripple effects of this misuse, including the distortion of government revenue colle ction, unfair price increases, and the undermining of programs meant to support legitimate PWDs. Restaurant owners have also reported an increase in sales attributed to PWD customers, rising from 5 percent to 30 percent, much of which is believed to be due to the fraudulent use of PWD IDs. This has deprived the government of significant tax revenues while imposing financial burdens on establishments. The senator underscored the importance of Republic Act 10754, which provides PWDs with a 20 percent discount and VAT exemption on specific goods and services. He stated, "This inquiry seeks to uphold the true intent of the law, ensuring only those eligible can access its benefits while safeguarding government revenue and business interests." Gatchalian stressed that while these benefits are crucial for legitimate PWDs, abuses compromise the law's intent.