Angara assures OFWs no VAT on remittances

from mb.com.ph

Senator Sonny Angara assured overseas Filipino workers (OFWs) that their remittances would not be subjected to further the value-added tax (VAT) rates.

Overseas Filipino Workers who just arrived from Libya, exits the Ninoy Aquino International Airport, August 19, 2104, in Pasay City.

Overseas Filipino Workers who just arrived from Libya, exits the Ninoy Aquino International Airport, August 19, 2104, in Pasay City.

Angara made the assurance following a Senate ways and means committee hearing where he got the commitment of state economic managers on the imposition of VAT on services fees of money transfer centers in the country.

“We want to clarify this information with our fellowmen abroad that no tax would be imposed on the money they would send to their families here in the Philippines,” said Angara, who chairs the Senate ways and means panel.

“We will make sure this won’t be an added burden to our OFWs,” he added.

During the committee hearing Department of Finance (DOF) Undersecretary Karl Kendrick Chua explained that under their proposal, only the service fee of domestic remittances and not the actual remittance would be taxed with 12-percent VAT.

“Our jurisdiction is only domestic transfers,” Chua told the committee.

Leave a Reply