FILE PHOTO: Customers receive money from families working abroad at a money remittance center in Makati City, Metro Manila, Philippines, September 19, 2018. REUTERS/Eloisa Lopez
MANILA, Philippines — A bill intended to protect the remittances of overseas Filipino workers (OFWs) has been approved by the House of Representatives on third and final reading.
During the plenary session last Tuesday, House Bill (HB) No. 10959 or the proposed Overseas Filipino Workers (OFWs) Remittance Protection Act was approved after 174 lawmakers present voted in the affirmative, while no one either voted against it or abstained.
Article continues after this advertisementREAD: House approves discounts on OFW remittances
FEATURED STORIES BUSINESS BIZ BUZZ: Meralco rock star is born BUSINESS BDO gets SEC nod for merger with The Podium BUSINESS Peso sinks to 58.9 per $1, lowest in over 2 yearsIf enacted, the bill would mandate a 50 percent discount on the fees imposed by banks and non-bank financial intermediaries on OFW remittances and transactions — which companies can then claim as tax deductions.
“Fees imposed by banks and non-bank financial intermediaries on OFW remittances to immediate family members shall be subject to a fifty percent (50%) discount,” the bill read.
Article continues after this advertisement“Bank and non-bank financial intermediaries providing discounts on remittance fees may claim the discounts granted as tax deduction based on the cost of services rendered to OFWs to be treated as ordinary and necessary expense deductible from the gross income of the intermediary falling under the category of itemized deductions,” it added.
Article continues after this advertisementThe bill also seeks to prevent banks from raising their remittance fees without consulting with relevant government agencies.
Article continues after this advertisement“All banks and non-bank financial intermediaries offering remittance services to OFWs are prohibited from raising their current remittance fees without prior consultation with the Department of Finance, Bangko Sentral ng Pilipinas, and the Department of Migrant Workers,” the bill noted.
The following will also be considered prohibited acts if the bill is signed into law:
Article continues after this advertisement Misappropriation or conversion, to the prejudice of the OFW or beneficiary, of foreign exchange remittances received in trust, or on commission, or for administration, or under any other obligation involving the duty to make delivery of, or to return the same, or by denying having received such foreign exchange remittance Taking of foreign exchange remittances without the consent of the OFW or beneficiary Imposition of remittance fees in excess of those prescribed under Section 5 of this Act Failure to post in a conspicuous place of the establishment the Philippine Peso rate of the foreign currency being transacted Failure to conduct consultation with the DOF, BSP, and the DMW before raising remittance feesHouse Speaker Ferdinand Martin Romualdez said this is the legislative chamber’s way of showing the country’s modern heroes that the government cares for them.
“This is one way of showing our unsung heroes, our more than 10 million OFWs across the globe, that we really care for them, and we have the compassion to help them lighten their burden for all their sacrifices, being the breadwinners of their families,” Romualdez said in a statement.
House Assistant Majority Leader and Tingog party-list Rep. Jude Acidre meanwhile noted that the measure encourages more remittances from OFWs while at the same time, pushes companies to grant discounts.
“This provides incentives to encourage remittance centers to grant the discount. The centers may claim the discounts granted as tax deductions based on the cost of services rendered to OFWs to be treated as ordinary and necessary expense deductible from their gross income,” Acidre said.
On OFWs’ financial education
Aside from this bill, the House also approved on third and final reading HB No. 10914 or the proposed Free OFW Financial Education Act, with 179 lawmakers voting in the affirmative, and no negative votes or abstentions.
Under this proposal, OFWs will be required to go through “mandatory and continuously updated financial education or literacy training seminars.”
READ: Bill requiring financial literacy training for OFWs pushed in Senate
Similarly, relatives of OFWs across the country will be “equipped with financial education and knowledge through on-line seminars and other feasible and effective means.”
Romualdez said that this will ensure that OFWs will have the skills needed to maximize their earnings abroad.
“This landmark legislation ensures that our overseas Filipino workers (OFWs) and their families will receive free comprehensive financial education, equipping them with the knowledge and tools they need to secure their financial future,” Romualdez said in a separate statement.
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“Through mandatory financial literacy training integrated into pre-departure and post-arrival seminarsacegame888, along with online resources for OFW families, we are creating a support system that will help OFWs maximize their hard-earned income and protect them from financial scams and pitfalls,” he added.
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