The widespread use of fraudulent Persons with Disabilities (PWD) identification cards is placing a significant financial burden on the restaurant industry in the Philippines, leaders of RestoPh, a national restaurant association, said in an exclusive Simpol.ph interview. Business owners are calling for urgent reforms to address the growing abuse of PWD discounts, which not only hurt restaurant revenues but also undermine the benefits meant for legitimate PWDs.
Eric Teng, former president and now president emeritus of RestoPh, and David Sison, the current president of RestoPh, have raised serious concerns about the rising number of fake PWD cards. In separate interviews, they detailed how fraudulent discounts are impacting restaurant profitability and exposing flaws in the verification system.
Teng noted that fake PWD cards are alarmingly common in restaurants. “At present, more than half of the PWD cards we see presented at restaurants are fake,” he said. “We know this based on the guidelines provided by the National Council on Disability Affairs (NCDA) and PDAO offices. The design, LGU code, and format often don’t match. We frequently see incorrect designs or duplicate serial numbers.”
He attributed the problem to the ease of acquiring counterfeit cards. “There are many fake PWD cards circulating because they can be printed at home or bought online. It’s a concerning situation,” he said.
Sison echoed this concern, highlighting how accessible fraudulent IDs have become. “With just a simple Facebook post, you can buy a fake PWD card for P500 to P1,500, complete with a booklet,” he said.
Under the law, restaurants must provide a 20 percent discount to PWDs and, in some cases, remove the 12 percent value-added tax (VAT) — effectively reducing the bill by a total of 28 percent (not 32 percent, since the VAT is removed from the already discounted amount).
“That means a total reduction of 28 percent,” Sison explained. “So for every P100 spent, the actual amount paid is P72 after the discount. When a fake PWD card is used, restaurants absorb an unnecessary P28 loss per transaction. The restaurant absorbs the 20 percent discount, and the government loses the 12 percent VAT.”
Sison underscored the impact on business operations. “The restaurant industry operates on very tight margins — usually around 10 percent or lower,” he said. “Losing 28 percent on a single transaction due to fraud is devastating.”
Teng noted that the economic strain has increased dramatically in recent years. “Two years ago, informal discussions among restaurant owners indicated that about 5 percent of sales were affected by PWD discounts. Today, that figure exceeds 25 percent, with some reporting as high as 30 percent. That’s a huge increase, but the actual population of PWDs hasn’t grown at the same rate.”
“Census data shows that people with disabilities make up less than 3 percent of the population — actually, under 2 percent,” he added. “Yet, in restaurants, it’s not unusual to see an entire table of 10 people, all claiming PWD discounts.”
Both Teng and Sison emphasized that verifying PWD cards is a major challenge for restaurants. “First, it’s very difficult to verify,” Teng said. “That’s why we emphasize our intent — we don’t want to deny legitimate discounts for people with disabilities.”
However, he pointed out that the law places the financial burden entirely on businesses, as the government does not subsidize these discounts. “Most of these discounts, particularly the larger ones, come at the expense of business owners,” Teng said.
Sison clarified that businesses do not receive tax credits for the discounts they provide. “It can be claimed as a tax deduction, but it’s not a tax credit,” he explained. “The only thing we recover is the cost of sales for the discount. We are left with absorbing most of the discount.”
Verification also creates challenges for restaurant staff, who often face customer backlash when questioning the validity of a PWD card. “This puts a strain on our frontliners, who are harassed or even verbally attacked when customers don’t get their discounts due to fake PWD cards,” Teng said.
Sison agreed, explaining how the manual verification process slows down service. “We train our staff to check the cards, but it takes longer to complete transactions,” he said. “If we find discrepancies, we contact the PDAO office or check the Department of Health website.”
To address these issues, the Department of Social Welfare and Development (DSWD) is developing a unified PWD ID with a QR code and hologram, making verification easier.
“Fortunately, the DSWD, under Secretary Gatchalian, is taking steps to create a unified PWD card with a hologram and QR code,” Teng said. “This will allow us to easily scan the QR code and confirm the card’s authenticity, eliminating the need for additional verification.”
Sison praised local government initiatives, particularly in Bacolod and Quezon City. “Mayor Albee Benitez of Bacolod City proposed a unified PWD ID system with QR codes to help restaurants verify cards instantly,” he said. “Quezon City has also been proactive in educating businesses on proper verification procedures.”
Both leaders emphasized the need for stricter enforcement against individuals selling and using fake PWD IDs.
“We hope to see strict criminal prosecution for those who print, sell, or use fake PWD cards,” Teng said. “If a fake credit card is found in a restaurant, we are instructed to confiscate it. But for fake PWD cards, there are no clear penalties. A customer caught using a fraudulent PWD card can simply go to another restaurant and try again.”
Sison urged the government to allow businesses to fully deduct the discounts from their business taxes. “We ask the government to support SMEs and restaurants by letting us fully deduct the discounts we provide, not just the cost of the items,” he said. “We also want to fully offset the VAT we pay.”
Despite their frustrations, both Teng and Sison reiterated that their goal is to protect genuine PWDs.
“The real PWDs are with us, and we need to protect their rights,” Teng said. “If fake PWD cards continue to be abused, restaurants will be forced to raise prices, and those who will suffer most are people who truly need these benefits.”
Sison made a direct appeal to the public. “The PWD discount exists to help those who truly need it,” he said. “But fake cards hurt restaurants, small businesses, and — most importantly — the legitimate PWD community. If you know someone using a fake PWD ID, tell them to stop. It’s harming our economy, our businesses, and the very people these benefits were meant to support.”
