Discussion on 50% discount in the remittance fee of OFWs has begun

The House Committee on Overseas Workers Affairs has consolidated nine bills aimed at reducing the remittance fee of overseas Filipino workers (OFWs).
The proposal mainly pushes for the provision of a 50% discount on the service fee imposed by financial intermediaries and non-bank financial intermediaries on OFW money remittances to immediate family members regardless of the amount of the remittance.

Financial intermediaries and non-bank financial intermediaries who provide a discount on remittance fees can avail of a tax deduction.

Representatives of the Department of Migrant Workers, Overseas Workers Welfare Administration, Bangko Sentral ng Pilipinas, and several other groups expressed their support for the proposal.

The Department of Finance admitted that they have reservations about the proposal because it will reduce the revenue or income of the government in addition to possible additional administrative costs.

In the 18th Congress, the Lower House adopted a similar proposal.

As a House panel moved to consolidate nine bills that seek to protect the remittances from overseas Filipino workers (OFWs), an official from the Department of Finance (DOF) warned that the country could lose as much as P3.5 billion if the proposed measure becomes law.

The measures – House Bills (HB) No. 185 (Pampanga 3rd District Rep. Aurelio “Dong” D. Gonzales Jr.), 1190 (Tarlac 2nd District Rep. Christian Tell Yap), 2944 (Cagayan 3rd District Rep. Joseph “Jojo” Lara), 3020 (Antique Lone District Rep. Antonio “AA” Legarda Jr.), 4170 (Northern Samar 2nd District Rep. Harris Christopher Ongchuan), 4257 (OFW Party-list Rep. Marissa “Del Mar” Magsino), 4343 (Malabon City Rep. Josephine Veronique “Jaye” Lacson-Noel and AN WARAY Rep. Florencio Gabriel “Bem” G. Noel), 4397 (Valenzuela City 1st District Rep. Rex Gatchalian) and 4469 (Davao City 1st District Rep. Paolo Z. Duterte, Benguet Lone District Rep. Eric Go Yap, and ACT-CIA Party-list Reps. Edvic G. Yap and Jeffrey Soriano)–would lower the remittance transfer fees, reduce taxes, impose a ceiling limit on fees, and penalize intermediaries and institutions who violate the terms.

But Philippines may lose up to P3.5-B in revenues ff OFW remittance law is passed