Dear PAO,
I am a senior citizen who has been invited to play golf by some of my buddies. But I am hesitant to play golf and join clubs because of my limited financial resources. I wonder if our Senior Citizen’s discount could apply to membership dues and the availment of services like locker fees and other services. I looked into the Expanded Senior Citizen’s Act of 2010 and saw that it provides for a 20 percent discount “on the utilization of services in hotels and similar lodging establishments, restaurants, and recreation centers.” However, the Implementing Rules and Regulations (IRR) of the said law expressly excludes “non-profit, non-stock golf and country clubs which are not open to the general public, and are private and for exclusive membership only are not mandated to give the 20 percent senior citizens discount.” So, are senior citizens entitled to a discount or not?
Reuben
Dear Reuben,
Please be informed of the Honorable Supreme Court’s ruling in the case of Hon. Corazon J. Soliman vs. Carlos T. Santos (GR 202417 and 203245, July 25, 2023, Ponente: Associate Justice Jose Midas Marquez), where it was provided that the 20 percent senior citizen’s discount under Republic Act 9994 (RA 9994) applies to all enumerated goods and services from all establishments under Sec. 4(a)(7) of the law. According to the Supreme Court:
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“To recall, Sec. 4(a), RA 9994, provides a 20% discount to senior citizens on the sale of the enumerated goods and services from all establishments. Sec. 4(a) does not contain any proviso allowing the DSWD to carve out wholesale exceptions to the 20% senior citizen discount. Moreover, Sec. 4(a)(7) provides that this discount applies to “the utilization of services in hotels and similar lodging establishments, restaurants and recreation centers,” and does not allow the DSWD to exempt entire classes of recreation centers from the coverage of this discount.”
The Supreme Court then discussed that the power to issue Implementing Rules and Regulations (IRR), and to thresh out the fine details of the law is a delegated authority. However, since it is a delegated authority, it cannot go beyond the scope and intent of the law itself. In this case, the Supreme Court made it clear that the discount applies to the availment of goods and services and not only to perceived “basic” goods and services, viz:
“In view of the foregoing, the Court finds that the DSWD exceeded its delegated authority and the assailed IRR provision is an invalid administrative issuance. Sec. 4(a)(7), RA 9994, refers to recreation centers and does not provide an exemption for non-profit, stock golf and country clubs nor does the law otherwise authorize the DSWD or any other administrative agency to create such an exemption. Consequently, the sale of goods and services by associations or non-profit, stock golf and country clubs to their senior citizen members for a fee, exclusive of their membership dues, such as the use of golf carts and locker rentals, is subject to the 20% senior citizen discount.”
However, the Supreme Court narrowed down and clarified the application of the 20% senior citizen’s discount. It clarified that the discount applies to the availment of goods and services but not to the membership fees or dues, viz:
“Considering this essential distinction between membership dues and fees collected by golf and country clubs for the rendition of services, the treatment of these fees under RA 9994 must likewise be distinguished, as follows:
“1. Sec. 4(a)(7), RA 9994, does not apply to membership dues, because such dues are not payment for the sale of a service. While the assailed IRR provision is invalid for being beyond the scope of RA 9994 and Sec. 4(a)(7) thereof, associations charging membership dues are not required to give the 20% senior citizen discount on such dues. This is not an exemption drawn from the invalid assailed IRR provision or any other administrative rule. Rather, it is based on the clear language of Sec. 4( a), RA 9994, which mandates the grant of the 20% senior citizen discount on the sale of the goods and services enumerated by the same law but not on the collection of dues for the privilege of membership.
“2. However, Sec. 4(a)(7) applies to the payment of fees for locker rentals as well as other charges pertaining to the members’ purchase of services provided by the club. In paying these fees, the purchasing member is availing of the club’s services, and not for the privilege of membership in the club. Thus, there is a sale of service as contemplated in Sec. 4(a)(7), and golf and country clubs are required to provide qualified members with the 20% senior citizen discount mandated by RA 9994.”
Considering the foregoing discussions, it is clear that while the administrative issuance was declared invalid, the 20 percent discount in non-profit, non-stock golf clubs only applies to the availment of goods and services and not to the payment of membership dues.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our application of the same. Our opinion may vary when other facts are changed or elaborated on.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]
