ROXAS SEEKS EXEMPTION OF OFWS FROM DOCUMENTARY STAMP TAXES MORE RETAINED EARNINGS MEANS GREATER PURCHASING POWER

Now here's good news for overseas Filipino workers and their families, who are burdened by a weaker United States dollar and rising costs of goods.

Senator Mar Roxas is seeking to remove the documentary stamp tax from remittances of OFWs, to give them greater purchasing power amid this time of skyrocketing prices of food and transport.

At present, for every remittance an OFW makes, a DST of 0.15% is collected by the government. "To some, the imposition may be minuscule and insignificant. But to OFWs and their families, such imposition becomes another financial burden," said Roxas, author of Senate Bill No. 2479, that removes the DST on OFW remittances.

He noted how at present, market prices of basic commodities have increased significantly, with chicken already at P120 per kilo, beef brisket at P180 per kilo, pork liempo at P170 per kilo, and bangus and tilapia at P80-P90 per kilo, all of which have increased by an average of P10 compared to the prices in 2007.

"Every peso saved can make a big difference for the average Filipino family. Removing the DST from OFW remittances can enable the families of overseas workers buy additional food or save this amount for other purposes," Roxas said.

The Liberal Party President noted that OFWs remitted $14.7 billion in 2007, higher than the $12.8 billion remitted in 2006. This number is seen to rise further this year to over $16 billion, in part due to the weakening of the United States dollar. Ironically, a weaker dollar has also led to less purchasing power of OFWs' money when their earnings are spent locally. The Philippine peso appreciated from P56:$1 in 2006 to P40:$1 earlier this year, and is now at P44.23:$1.

"As if high prices of oil and rice were not enough, even the currency that our OFWs earn in has diminished in value. We need to give these 'new heroes' the support that they need and deserve, understanding their great contribution to our economy," he said.

Roxas' bill amends Sec. 181 of the Tax Reform Act of 1997, on the imposition of DST, by exempting from DST payment money transfers made abroad by OFWs.