More and more Filipinos capitalize on migrating abroad and seeking employment with higher pay, which consequently making the lives of their families better and with more opportunities for improvement. They work abroad but they do not keep most of their income with them but send it in large amounts to the Philippines in the form of remittances.
Overseas Filipino workers (OFWs) constitute one of the largest groups of expats worldwide and their remittances provide finance to their families’ expenses on food, shelter, education, and other needs. Money transfers from them account for approximately 10% of the country’s Gross Domestic Product (GDP), which in turn contributes to a positive impact on the country’s earnings of foreign exchange.
OFW remittances play an important role in increasing the economic standing of our nation in the world by keeping it competitive in providing services in export business and at the same time boosting the ability of the country to acquire services and merchandise from foreign countries and consequently achieving a competitive economic status with the rest of the world.
Recognizing this enormous contribution of OFWs to Philippine economy, House Bill No. 9032, or the “Overseas Filipino Workers (OFWs) Remittance Protection Act,” a measure allowing OFWs discounts on remittance fees has been approved on second reading at the House of Representatives.
The bill offers 50% discounts to OFWs for remittances of not more than $500 or its equivalent in other currencies; a 40% discount for $500-1,000; a 30% discount for $1,000-1,500; a 20% discount, for $1,500-2,000; and a 10% discount for over $2,000.
The establishments that grant these discounts also benefit from this law for they may claim tax deductions “based on the cost of services rendered to OFWs,” as stated in Section 5 of the said Bill.
The bill also provides a mandatory financial education program to OFWs and their families by the Department of Finance (DoF), Bangko Sentral ng Pilipinas (BSP) and the Philippine Overseas Employment Administration (POEA) and other agencies.
The bill was sponsored and authored by Rep. Jesulito Manalo (Party-list, ANGKLA), with co-authors Rep. Micaela Violago, Deputy Speaker Linabelle Ruth Villarica, and Reps. Francisco Datol Jr., and Fernando Gonzalez, among others.
Source: http://www.congress.gov.ph
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