BIR Warns Against Fake PWD IDs, Cites ₱88.2 Billion Revenue Loss in 2023

The Bureau of Internal Revenue (BIR) has issued a stern warning against the sale and use of counterfeit Person with Disability (PWD) identification cards, labeling the practice as tax evasion and citing a ₱88.2 billion revenue loss in 2023.

A Call to Action

BIR Commissioner Romeo Lumagui Jr. announced measures to combat the proliferation of fake PWD IDs, emphasizing their misuse not only undermines government revenue but also disrespects legitimate PWDs.

“People who sell and use fake PWD IDs are committing tax evasion and disrespecting the rights of compliant PWDs,” Lumagui said.

He added that these IDs are meant to provide essential benefits for PWDs, such as:

• 20% discount on select goods and services.
• VAT exemptions for their exclusive use.

Widespread Misuse

Counterfeit PWD IDs are reportedly being sold on streets and online marketplaces, making them easily accessible to those fraudulently claiming benefits.

Lumagui confirmed that the BIR will intensify efforts, including:

• Tax audits of establishments providing discounts and VAT exemptions to PWDs.
• Verification of ID legitimacy through records submitted by businesses, including PWD names, ID numbers, disabilities, and claimed benefits.

Businesses found to have honored fake IDs will face penalties, including the disallowance of tax deductions and assessments for deficiency VAT with interest and penalties.

Legislative and Government Collaboration

The BIR is working with the Department of Health and the National Council on Disability Affairs to verify the legitimacy of PWD IDs.

On December 5, 2024, the Senate Committee on Ways and Means conducted a hearing on Senate Resolution No. 1239, highlighting the economic and social impacts of fake PWD IDs. The resolution aims to prevent further misuse and safeguard the rights of legitimate PWDs.

Protecting PWD Rights

Republic Act No. 7277, as amended by R.A. No. 10754, ensures PWDs have access to benefits that promote their well-being and integration into society. However, Lumagui emphasized that exploiting the system undermines these goals.

The BIR vowed to hold violators accountable, signaling its commitment to protect government resources and uphold the rights of PWDs.