Republic of the Philippines
Office of Senate Minority Leader Aquilino Q.
Pimentel, Jr.
Senate, Pasay City
Press Release
Date: April 14, 2007
Ref: Omeng / (02) 5526731
http://www.nenepimentel.org
PIMENTEL SEEKS SCRAPPING OF PLAN TO TAX REMITTANCES OF OFWs
CAGAYAN DE ORO CITY — Senate Minority Leader Aquilino
Nene Q. Pimentel, Jr. (PDP-Laban) today strongly
rejected a plan of the Department of Finance (DFA) to
tax the foreign exchange remittances of overseas
Filipino workers (OFWs).
Pimentel said OFWs should be entitled to tax exemption
of the earnings they remit to their families back home
to reward them for their contributions in stabilizing
the national economy.
He said the dollar remittances of OFWs should be
treated differently from foreign investments which are
given certain incentives by the government.
The remittances of OFWs should be tax-free and
treated better than foreign investments that are given
incentives. The money of OFWs stays in the
Philippines. While it is true that foreign investors
bring money into the country, they repatriate their
profits abroad, Pimentel said.
He said the plan to tax OFW earnings also contradicts
the governments persistent claim that its revenue
collection has dramatically increased.
Pimentel said the government should think of ways of
repaying back to the OFWs for their sacrifices and for
their regular dollar remittances, instead of punishing
them with a tax imposition.
He said that the government may waive certain fees for
OFWs like passport fee to ease their financial burden
in seeking for employment abroad.
Pimentel said it is not uncommon to hear of workers
selling or mortgaging their houses, farms or work
animals in order to defray their expenses for overseas
placement.
-o0o-
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