REPRESENTATIVE Ron P. Salo, from Kabayan Partylist, proudly sponsored the Substitute Bill for “An Act Providing For Protection of the Remittances of OFWs” during the House Committee on Ways and Means meeting on 13 February 2024, which was subsequently approved.
“It is imperative that we lessen the cost incurred by OFWs in their remittances, which account to a staggering USD 36.1 billion or 8.9 percent of the country’s gross domestic product”, said Salo.
The proposed legislation aims to grant 50% discount on fees of OFW remittances to their families back here in the Philippines. In return, banks and other financial intermediaries will receive tax deductions equivalent to the discounts provided to OFWs.
Initially, the substitute bill included a provision limiting the total annual tax deduction for these financial intermediaries to ₱24,000 per OFW. However, in a move that will further encourage OFWs to send their remittances, the committee removed the proposed cap.
Moreover, the bill prevents these financial institutions from increasing remittance fees without prior consultation with goverment financial institutions, thereby shielding OFWs from unexpected fee increases.
“I, together with Kabayan Partylist and the Committee on Ways and Means, underscore our commitment to prioritize the welfare of our OFWs,” Salo stated.
