RemittancesGateway.org

Veto sought of law’s provision exempting OFWs from stamp tax

Monday, 22 February 2010 08:44

Source: Business World Online
By L.D. Desiderio

The Finance department will ask the President to veto a provision in the bicameral conference committee’s version of the proposed Migrant Workers Act that exempts overseas Filipino workers’ (OFW) remittances from documentary stamp tax (DST), Finance Secretary Margarito B. Teves said yesterday.

"Yes," Mr. Teves said via text message when asked if his department would seek a veto of the provision.

Finance Assistant Secretary Lourdes B. Recente said in an interview late last week that the provision was inserted in the bicameral committee’s version of the bill that now awaits the President’s signature.

"This [provision] can result in P1 billion revenue loss per year," Ms. Recente said.

She noted that separate bills proposing the exemption of these remittances -- House Bill No. 5682 and Senate Bill No. 3255 -- are still pending in the committee level in both chambers.

Hence, she said, the department was surprised to find out that the provision was inserted in the bicameral version of the migrant workers bill.

"We will be submitting our comments and recommendations to the President," she said.

The migrant workers bill, which seeks to improve the protection, promotion of welfare and assistance to OFWs was ratified by both chambers last Jan. 18.

Among others, the measure requires compulsory insurance coverage for agency-hired workers, include benefits of $15,000 for accidental death, $10,000 for natural death, and $7,500 for permanent total disablement, among others, at no cost to the workers.

Moreover, officials who issue permits for OFWs to work in countries not compliant with international labor standards will be dismissed from service and disqualified from holding appointive public posts for five years.