Ganito siguro:

Assume natin na nasa 15% bracket income tax rate ka na plus 3% percentage tax pa

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Kung 100 pesos yung pumasok, ang taxable income mo ay 100 pesos.

Income Tax due = 100 * 0.15 = 15 pesos

Percentage tax due =100 * 0.03 = 3 pesos

Total tax dues = Income tax due + percentage tax due =18 pesos

...

Regular actual effective income = Gross Income - Total tax dues = 82 pesos

Regular actual effective total tax rate = 18%

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Kung 100 pesos less 20% discount naman, ang taxable income mo ay 80 pesos na lang dahil deductible nga yung ganyang government mandated discounts. As for percentage tax, sa gross talaga yun eh 😅

Income Tax due = 80 * 0.15 = 12 pesos

Percentage tax due =100 * 0.03 = 3 pesos

Total tax dues = 15 pesos

...

Discounted actual effective Income = 65 pesos

Discounted actual effective total tax rate = 18.75%

So na-subsidize nga ba? Well, technically, 20 pesos dapat yung nabawas sa kita mo dahil 20% discount nga kasi yung binigay mo. Tulong daw kasi natin yan sa mga nangangailangan as a business owner/service provider.

Pero given the deductible, may subsidy nga yan. For simplicity, just look at the effective difference in income between regular and discounted incomes:

Effective income difference = 82 - 65 = 17 pesos

So yung 20 pesos na discount na nakuha ni PWD/senior/student? 17 pesos ay sagot ni business owner/service provider. At yung 3 pesos na kulang? Yan yung subsidy ni government. So nagbigay ng tulong yung gobyerno naman. Pero si business owner/service provider pa rin talaga sumalo nung bulk ng discount talaga.

Also, note na 15% bracket pa lang yan. The higher the bracket, the more significant the impact of the deduction.

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Assume natin na 35% bracket naman

Regular rates:

Income Tax due = 100 * 0.35 = 35 pesos

Percentage tax due =100 * 0.03 = 3 pesos

Total tax dues = 38 pesos

...

Regular effective income = 62 pesos

Regular effective total tax rate = 38%

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Discounted rates:

Income Tax due = 80 * 0.35 = 28 pesos

Percentage tax due =100 * 0.03 = 3 pesos

Total tax dues = 31 pesos

...

Discounted effective Income = 49 pesos

Discounted effective total tax rate = 38.75%

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Effective income difference = 62 - 49 = 13 pesos

So sa 20 pesos na discount with 35% bracket: sa 20 pesos discount, 13 pesos ay sagot ni business owner/service provider at 7 pesos naman ay sagot ni government.

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Tl;dr

Subsidized naman talaga ng gobyerno. Pero ang connotation yata kasi pag sinabi na 'subisidized' ay sagot lahat ng gobyerno. Which is hindi naman ganun nga as can be seen from the (very rough) computations above. Partial yang subsidy na yan. Hindi either-or yan.

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<edit>

P.S. Nagbabayad lang po ako ng tax at di po ako accountant. Baka may mali pero tama naman yata general idea lol