SEN. Sherwin Gatchalian has filed a resolution urging the Senate to investigate the proliferation of fake Persons With Disabilities (PWD) identification cards that he said lead to “tax leakages.”
In filing Senate Resolution No. 1239, Gatchalian said: “We need to determine the effect on the government’s tax collection of the tax leakages caused by the proliferation of fake IDs so we can craft the necessary legislation or policy recommendation.”
Holders of PWD IDs can avail of a 20 percent discount and value-added tax exemption on goods and services.
Gatchalian said he has received reports that fake PWD IDs are being sold in various parts of the country and wants the Senate to determine the brains behind the scheme.
Gatchalian said he has learned that more than 100 fake IDs were sold in Bacolod City while at least seven IDs were confiscated after the Cebu City government received reports of an alleged increase in the issuance of fake PWD IDs.
He said the fake IDs were printed on a different type of paper and the PWD numbers were mixed up and the encoded types of disabilities were spurious.
The confiscated IDs did not match the names in the city government’s verified list of PWDs.
He said local government units have funded assistance and incentives to PWDs and the use of fake ones undermines the LGU programs meant to address the needs of the disabled.
He said restaurant owners have also incurred losses due to the use of fake PWD IDs.
He also said there has been a significant increase in sales made to PWDs from five percent to 30 percent.
RA 10754, also known as an Act Expanding the Benefits and Privileges of Persons with Disabilities, allows establishments to recoup the PWD discounts granted through tax deductions based on the net cost of the goods sold and services rendered.
“The use of fake PWD IDs has robbed the national government of revenues it could have collected if not for the VAT-exemption and PWD discounts given to unqualified individuals,” he said.
