Senior, PWD discounts will hurt small retailers, association says

RETAILERS said the plan to increase the monthly discounts on basic goods and prime commodities enjoyed by senior citizens and persons with disabilities (PWDs) need to be “economically sustainable,” citing the potential to harm smaller businesses.

In a position paper released on Monday, the Philippine Retailers Association (PRA) said the government should carefully consider the plan to increase the senior and PWD monthly discount cap to P500 as small retailers may struggle to offer the new level of benefits.

“While we commend these well-intentioned efforts, we also believe it is essential to strike a balance between social welfare and economic sustainability,” PRA President Roberto S. Claudio said in the paper.

The expanded benefits, floated in a draft joint administrative order, constitutes a financial burden on small and medium enterprises that are already operating on “thin profit margins” and may “struggle to absorb the costs” that the mandated discounts could introduce.

The joint administrative order will be issued by the Departments of Trade and Industry, Agriculture, and Energy.

The PRA recommended that the government consider extending direct subsidies or tax incentives to retailers to “alleviate the financial burden” of establishments providing discounts to seniors and PWDs.

“We advocate for the adoption of government-supported funding mechanisms to ensure the continued provisions of discounts to SCs and PWDs without unduly burdening the retail sector,” Mr. Claudio added.

Speaker Ferdinand Martin G. Romualdez last month met with Trade officials to discuss the plan to increase the weekly discounts for senior citizens to P125 per week from the current P65.

The proposed discount hikes would result in a 92% increase in discounts on basic goods such as rice, bread, meat, fish, chicken, eggs, and vegetables. Manufactured goods such as processed meat and sardines may also be purchased with the expanded benefit. —