Written by Rosselle K. Yu, 30 August 2007
A few months ago, the government saw it fit to grant persons with disabilities (PWDs) similar privileges and incentives granted to senior citizens through the issuance of Republic Act (RA) No. 9442, which amended RA 7277, otherwise known as the “Magna Carta for Disabled Persons”.
Among other incentives, the amended Magna Carta provides a minimum discount of 20% to PWDs on the following:
- Utilisation of all services in hotels and similar lodging establishments, restaurants and recreation centers;
- Admission fees charged by theatres, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement;
- Purchase of medicines in all drugstores;
- Medical and dental services including diagnostic and laboratory fees, and professional fees of attending doctors in all private hospitals and medical facilities;
- Fare for domestic air and sea travel; and
- Public railways, skyways and bus fare.
The discount granted may then be claimed by the pertinent establishment as an allowable deduction from its gross income for income tax purposes in the same taxable year that such discount is granted. The tax deduction shall be based on the net cost of the goods sold or services rendered.
Grants of privileges and incentives are inherently a good thing. They are made even better when taken in conjunction with efforts to integrate our differently-abled brethren into mainstream society by helping them to be self-reliant, to the extent possible. Who can argue with the old proverb that wisely asserts “Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime.”?
It is worthy to note that the Magna Carta for Disabled Persons grants private entities the following tax incentives to encourage the employment of PWDs:
- An additional deduction from gross income, equivalent to 25% of the total amount paid as salaries and wages to PWDs upon presentation by the private entity of a certification from the Department of Labor and Employment that PWDs are under its employ; and
- An additional deduction from net taxable income, equivalent to 50% of the direct costs of improvements or modifications, to private entities that improve or modify their physical facilities in order to provide reasonable accommodation for PWDs (excluding those that are required under Batas Pambansa Bilang 344, otherwise known as the “Accessibility Law”).
Moreover, pursuant to the law, the manufacture of technical aids and appliances for the use and/or rehabilitation of PWDs is considered a preferred area of investment and must necessarily be included in the Investments Priorities Plan (IPP).
Under the implementing guidelines of the 2007 IPP, these include the manufacture of walk-in baths designed for PWDs, commode chairs, braille books, hoists and lifting chairs designed for incapacitated people, including stair lifts, wheelchairs, scooters and automobiles using special controls or assistive technology designed for PWDs, hearing-aids, artificial limbs, orthotics, prosthetics and orthopedic braces. Companies proposing to manufacture such devices may, upon endorsement from the Department of Social Welfare and Development (DSWD), avail of incentives under the Omnibus Investments Act, which include income tax holiday (ITH), exemption from local business tax, and tax and duty free importation of capital equipment.
This article dwells on the tax benefits of championing the cause of PWDs because it is published in a business paper and people go into business to make money. However, there are other (more meaningful, some may argue) benefits of doing so, that may not necessarily translate into improvements in the bottom line.
Several weeks ago, a foreign news network featured a story about one of the largest drugstore chains in the US (Walgreens) which planned to hire an 800-person workforce that is one-third composed of PWDs to man the first of several regional distribution centers which will make labour opportunities equally available for PWDs. Since the company invests heavily in technology, the distribution center is designed to accommodate people of all shapes, sizes and (dis)abilities, making Walgreens an equal opportunity employer in the fullest sense of the word.
The news reported that the newly opened distribution center proved to be the most efficient one in the company, despite (or maybe because of) its workforce composition. This is not surprising when one considers that warehouse operations are segmented into various roles and procedures, and the fact that some PWDs are known to thrive on structured environments. The Walgreens model proves that PWDs can take on the rigmarole of being in the mainstream workforce.
The distribution center is the brainchild of the company’s senior vice president for distribution and logistics, Randy Lewis, who has a 19-year old son with autism. Lewis’s fear about his son’s future fueled his drive to provide the solution. Necessity truly is the mother of invention.
The Walgreens model gives hope to parents of disabled children. Moreover, it helps PWDs reach their full potential, which according to Maslow’s Hierarchy of Needs, is the highest need that we humans aim to satisfy.
There are solutions that can address the short-term needs of differently-abled persons, but in the end, it is helping them to help themselves that may be the true panacea.
Perhaps more importantly, regardless of how society has managed to put price tags on most things, there are still some things, such as self-esteem and equal opportunity, that are beyond measure.
