The Bureau of Internal Revenue (BIR) has sounded the alarm on the sale and use of counterfeit Person with Disability (PWD) identification cards, branding these practices as tax evasion and a major source of revenue losses.
₱88.2 Billion Revenue Loss
BIR Commissioner Romeo Lumagui Jr. revealed that the proliferation of fake PWD IDs led to an estimated ₱88.2 billion loss in government revenue in 2023, as disclosed in a recent Senate investigation.
“People who sell and use fake PWD IDs are not only committing tax evasion but also disrespecting legitimate and compliant PWDs,” Lumagui said.
Exploitation of Benefits
Under Republic Act No. 7277, as amended by R.A. No. 10754, PWDs are entitled to a 20% discount and VAT exemptions on select goods and services. These benefits are exclusively for improving the quality of life of PWDs.
However, fake PWD IDs have been exploited by individuals fraudulently seeking these benefits. Lumagui noted that these IDs are sold on streets and online platforms, making them accessible to non-PWDs.
Senate Investigation and Legislative Action
The issue was a key focus of a December 5 Senate Committee on Ways and Means hearing, based on Senate Resolution No. 1239, which aims to curb the misuse of PWD IDs and protect businesses and government revenue.
BIR’s Crackdown
The BIR will:
- Conduct tax audits on establishments granting PWD discounts.
- Require businesses to maintain records of PWD transactions, including names, ID numbers, disabilities, and discount details.
- Verify the legitimacy of IDs submitted by establishments.
Establishments found to have honored fake IDs will face penalties, including disallowance of deductions, VAT assessments, and associated interest.
Collaboration with Other Agencies
The BIR plans to strengthen coordination with the Department of Health (DOH) and the National Council on Disability Affairs (NCDA) to ensure accurate verification of PWD IDs and deter fraudulent practices.
The bureau’s intensified efforts aim to uphold the rights of legitimate PWDs while addressing revenue losses caused by fraudulent activities.