MANILA - The government lost about P88.2 billion in taxes in 2023 due to the fake identification cards of Persons with Disabilities (PWDs), according to Sen. Sherwin Gatchalian. 

Gatchalian, in Thursday’s hearing of the Senate Committee on Ways and Means that he chairs, said there is an estimated 8.5 million illegitimate PWDs in the country, while there are only 1.8 million legitimate PWDs. 

The fake IDs, according to Gatchalian, are used to avail of the 20% discount and value-added tax exemption. 

Given the huge number of fake IDs, the discounts given by establishments for these have ballooned to P166 billion.

Department of Finance (DOF) Assistant Secretary Karlo Adriano said these discounts translate to foregone revenue. 

“Aside from revenue foregone, if there are many fake IDs, it can also translate to higher prices for general consumers. These businesses are here to make profit and if the system is abused with these discounts, the only way to recoup those losses is to put a higher price,” Adriano explained. 

An increase in prices is the inevitable effect that restaurant owners see. 

“Two years ago we detected 5 percent of our sales affected by PWD discounts. Now, we are seeing close to 25 percent or over which is a five fold increase in last two years,” Eric Teng, president of the Restaurant Owners of the Philippines (Resto PH) said. 

Restaurant owners sound alarm over fake PWD cards

“This inevitably will force us to raise prices. And when we raise prices, the effect will be to harm the persons with disabilities themselves. The legitimate disabled people will be the victims of these fake PWD cards,” Teng added. 

“Our industry was about 16 billion dollars in 2023. If we were to factor 25 percent, that means about 1 billion dollars lost in sales for 2023,” Teng said. “It’s a clear and present danger for the survival of the restaurant industry.” 

He said they have observed several dubious ways people tried to get a discount such as a husband and wife having the same PWD ID number, a pilot declaring visual disability, and a whole family with PWD cards. 

PWD discounts apply to group orders: DOJ

According to Teng, they observed the spread of fake PWD IDs after the pandemic. 

Teodoro Padilla, Executive Director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP) said their industry has also been affected by fake PWD IDs. 

“Legitimate PWDs lose access to benefits as resources are diverted to unscrupulous individuals. Non-PWDs unfairly deplete the supplies of innovative life saving medicines. And number three, pharmacies bear 70 percent of the cost of discounts,” Padilla said. 

Supermarkets are also directly hit by fake PWD IDs, according to the Philippine Amalgamated Supermarkets Association Inc.

“Papasok ang mga customer natin, we cannot deny them if they have the ID to present. We are all tied up just to give them that discount because we cannot actually determine who is legit or who is not legit, especially kung kami na mga owner nahihirapan, what more pa kaya yung mga frontliner namin na nasa ground mismo,” PAGASA Director Raymond Oncena said. 

PROLIFERATION 

During the hearing, several stakeholders said fake PWD IDs were sold online. 

In Valenzuela City, these were allegedly sold house-to-house.

According to Snooky Cortez, head of the city’s Persons with Disability Affairs Office, they were able to discover fake IDs after some residents went to their office to ask for a medicine booklet. 

The IDs presented, however, did not match the number in the LGUs system and did not resemble the official ID. 

“May mga taong lumapit sa kanila na nagsabi na sila po ay sa LGU nagtatrabaho o may kakilala po silang taga-LGU. Dahil nga po naririnig nila na sa Valenzuela ay may kahigpitan ang pag-aapply ng PWD, kaya po mas ang kanilang ginagawa ay magpalakad na lamang po,” Cortez recounted. 

The going price for a fake ID, said Cortez, ranges from P500 to P2,500.

“Yung taong nag-offer alam nilang related sa city hall. Yung isa po ay nagtatrabaho sa city hall. But different department po,” Cortez said.  

Valenzuela Councilor Atty. Walter Magnum Dela Cruz said some of those whom they confronted admitted to selling fake IDs, although they denied it in their counteraffidavit.

Cortez said they have already filed cases. 

Atty. Marie Cabrera of the Quezon City LGU said they have monitored fake PWD IDs being sold in Facebook’s Marketplace. 

In order to curb the proliferation of fake PWD IDs, Quezon City has included a QR code in theirs to better determine if an ID is legitimate. 

This is also the strategy of the Bacolod City Goverment. Mayor Albee Benitez said an establishment can scan the QR code to check the information uploaded in the cloud. 

RECOMMENDATIONS 

The National Council on Disability Affairs (NCDA) recommended unifying the security features of PWD IDs to address the problem with fake ones. 

NCDA Executive Director Glenda Relova said they are also talking to Meta to curb the proliferation of selling fake IDs on Facebook. 

The agency also recommended the transfer of the management of the Philippine Registry for Persons with Disabilities (PRPWD) from the Department of Health to NCDA.

According to Relova, they have been working with various Persons with Disability Affairs Offices to quickly upload information for the IDS of PWDs. NCDA has provided computers to 200 LGUs in order to do this.  

“Sometimes nare-refuse persons with disability na legit na PWD because di nauupload ID nila ng LGU,” Relova said. 

Refused a PWD discount? Where and how to file complaints

She added that they still use manual uploading of information, which Gatchalian wants changed. 

“Let’s move to the 21st century,” he said. “I think you should start using real time cloud based uploading of information.” 

Gatchalian also pointed to the lack of PDAO offices in certain areas as a loophole in the system. 

“There is no dedicated office to do all paperwork, to validate, compile records let alone upload information.

“A few months ago we discussed developing electronic ID for all those under PRPWD. The NCDA will be doing it pretty soon,” Relova said. 

She explained that LGUs will need a software to generate the QR code. An LGU that cannot afford a software can reach out to NCDA for possible subsidy and technical assistance.