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P88.2B in Tax Losses: DOJ Flags Nearly 6M Fake PWD IDs

by DitoSaPilipinas.com on Oct 09, 2026 | 10:23 AM
Edited: Oct 11, 2026 | 10:57 PM
P88.2B in Tax Losses: DOJ Flags Nearly 6M Fake PWD IDs

P88.2B in Tax Losses: DOJ Flags Nearly 6M Fake PWD IDs

The Department of Justice (DOJ) has warned individuals who obtain Persons with Disability (PWD) identification cards through fraud or illegal means that they could face criminal charges. Business owners were also cautioned against confiscating IDs they suspect to be fake without proper verification or legal action.

Millions of PWD IDs Raise Concerns Over Fraud

Chief State Counsel Dennis Chan cited data from the National Council on Disability Affairs (NCDA) showing a 5.7-million discrepancy between registered PWDs and people using PWD IDs.

“Despite 2.8 million registered PWDs, there are around 8.5 million people using PWD IDs,” Chan said during a press conference on Thursday, October 8.

The government was estimated to have lost P88.2 billion in tax revenues in 2023 due to fraudulent PWD ID use, based on data gathered by the Senate committee on ways and means in 2024.

Under Republic Act No. 10754, qualified PWDs are entitled to a 20% discount and exemption from the 12% value-added tax (VAT) on certain goods and services.

Chan warned that people using fake IDs could face charges such as falsification of public documents and estafa. Public officers involved in producing fraudulent government-issued IDs may also face graft charges.

Businesses Must Honor IDs Before Verification

Chan stressed that establishments cannot automatically confiscate PWD IDs they suspect to be fake. Businesses must grant the applicable benefits upon presentation of an ID, even if they have doubts about its authenticity.

However, establishments may subsequently verify the ID and pursue legal action if it is proven fraudulent.

Meanwhile, the NCDA is developing a unified PWD ID system to improve verification and prevent fraud. The initiative will initially cover 200,000 PWDs across 25 local government units.

The system will include a new ID and database to identify duplicate records. A digital version accessible through a mobile application or web portal, with a QR code for verification, is also planned. Chan said full implementation could take two to three years.

Legitimate PWDs Affected by Crackdown

The controversy has also affected legitimate PWDs. A female medical technologist diagnosed with major depressive disorder and anxiety filed a complaint with the NCDA after a restaurant allegedly refused to honor her digital PWD ID.

She said she presented the ID on her phone and offered to have it scanned, but staff refused because she did not have the physical card.

The incident highlights the need for reliable verification procedures that prevent fraud without unfairly denying qualified PWDs their legal benefits.


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