SC clarifies rule on 20% senior discount in country clubs, stocks, golf courses

The Supreme Court (SC) has invalidated a provision in the implementing rules and regulations (IRR) of Republic Act 9994 or the Expanded Senior Citizens Act of 2020 formulated  by the Department of Social Welfare and Development (DSWD) which exempts non-profit, stock golf and country clubs from giving 20 percent senior citizens discount.

In a 13-page decision written by Associate Justice Jose Midas Marquez, the SC’s First Division clarified that only the sale of goods and services pertaining to the use of the clubs’ facilities and equipment is subject to the 20 percent senior citizen discount as mandated under  Section 4 (a)(7) of R.A. 9994.

These include the use of golf carts and locker rentals.

The said provision specifically states that “senior citizens shall be entitled to the grant of 20 percent discount and exemption from the value-added tax (VAT), if application, on the sale of the following goods and services from all establishments, for the exclusive use and enjoyment or availment of senior citizens.”

According to the high court, Section 4(a)(7) does not apply to the payment of membership dues.

It pointed out that membership fees or dues do not involve the sale of a good or service.

“Such [membership] fees are paid for the privilege of membership, and  not for the purchase of a good or service,” the SC said.

It also pointed out that Section 4(a)(7) does not give the DSWD the authority to come out with exceptions to the 20 percent senior citizens  discount  as what it did when it issued  the assailed  paragraph 2, Section 4, Article 7, Rule IV of R.A. 9994’s IRR.

The DSWD earlier stated that  “non-profit, stock golf and country clubs which are not open to the general public, and are private and for exclusive membership only as duly proven by their official Securities and Exchange (SEC) registration, are not mandated to give the 20 percent senior citizens discount.

“While we agree with the DSWD that there are ‘matters which are  entrusted to the sound discretion of the government agency entrusted with the  regulation of activities coming under the special and technical training and  knowledge of such agency,’ and that ‘the exercise of administrative