‘Higher discounts inflationary’

- Advertisement -

The Philippine Amalgamated  Supermarkets Association (PAGASA)  said  increasing the maximum amount eligible for discount to senior citizens (SCs) and persons with disability (PWDs) is inflationary and damaging to prices of basic and prime commodities  (BNPCs) and may cause the closing down of micro, small and medium  (MSM) retailers.

In a position paper on the draft of a joint administrative order on the  revised rules on granting special discounts to SCs and PWDs on the purchase of BNPCs, PAGASA president Steve Cua  called for safety nets in the availment of discounts such as annual re-registration to clamp down on the abuse of the privileges.

The group earlier called for the tax deductibility of the discounts on PCs, similar to the tax treatment on those transactions to PWDs.

- Advertisement -

Cua said while this will take more work for the retailers, it may be doable for retailers and save the economy from run-away inflation

Cua said as it is, the Expanded Senior Citizen Act of 2010  is grossly unfair for the retail and affected service sectors mainly because discounts extended to this underprivileged sector is shouldered totally by the establishments extending said discounts.

Another safety net proposed by Cua is the standardization of the booklet  either in print or digital form to avoid over-buying or purchasing more than what the customer actually needs.

“ PAGASA states in no unclear terms that increasing the maximum amount eligible for discount to SCs and PWDs is inflationary and damaging to prices of BNPCs and may cause the closing down of MSM retailers not able to put up with the cost of operations,” Cua said.

He said retailers will have no choice but to raise prices.

Author

- Advertisement -

Share post: