REVENUE INVESTIGATION. Senator Sherwin Gatchalian led a public hearing at the Senate in Pasay City on December 5, 2024, to tackle the issue of fake Person with Disability (PWD) identification cards and their negative impact on government finances. Gatchalian highlighted that the misuse of these IDs leads to significant tax losses, unfair price hikes, and weakens support programs for genuine PWDs. (Photo courtesy of Senate PRIB)
MANILA – The Senate Committee on Ways and Means, under the leadership of Senator Sherwin Gatchalian, held a public hearing to address the growing problem of counterfeit PWD identification cards and their detrimental effect on government revenue.
The focus of the hearing was Senate Resolution 1239, introduced by Gatchalian, which addresses the tax evasion facilitated by the misuse of these fake IDs.
“The legislation aims to support the PWD community and fulfill our duty to assist them. However, the 20 percent discount and VAT exemption, which together offer a 32 percent discount, have become a target for exploitation by dishonest individuals,” Gatchalian explained.
It has been reported that these fake PWD IDs are sold for as little as PHP300 in Bacolod City and as much as PHP1,300 in Valenzuela City, turning it into a profitable venture for those exploiting the system.
Gatchalian pointed out that this exploitation has broader consequences, including skewing government revenue collection, causing unjust price increases, and weakening programs designed to support legitimate PWDs.
Restaurant owners testified to the committee about a significant increase in sales linked to PWD customers, rising from 5 percent to 30 percent, with suspicions that much of this increase is due to the fraudulent use of PWD IDs.
This misuse not only robs the government of crucial tax revenue but also places a financial strain on businesses.
Gatchalian emphasized the significance of Republic Act 10754, which provides PWDs with a 20 percent discount and VAT exemption on certain goods and services.
“This investigation aims to preserve the original purpose of the law, ensuring that only eligible individuals benefit from it while protecting government revenue and the interests of businesses,” he stated.
These benefits are essential for legitimate PWDs, but their abuse undermines the law’s purpose, Gatchalian concluded. (PNA)