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House committee OKs travel tax exemption for all OFW dependents

In an effort to recognize the commendable dedication and hard work of overseas Filipino workers (OFWs), the House committee on overseas workers affairs has approved a bill granting travel tax exemption to dependents of all OFWs.

House Bill 6138 seeks to amend Sections 3 and 35 of Republic Act (RA) No. 8042, otherwise known as the “Migrant Workers and Overseas Filipinos Act of 1995”.

In its current form, Section 35 of RA 8042 grants travel tax and airport fee exemption only to migrant workers while Section 3 of the said law defines “dependents” as spouses and children of married OFWs.

House Speaker Pantaleon Alvarez, the principal author of the bill, said dependents of single-parent OFWs should also be entitled to incentives to which kids of their married counterparts are entitled to.

“There is still some void to fill as the so-called solo parent OFWs face some sort inequity in the field of taxation,” he said.

“Considering that solo parent OFWs are as equally worthy of government recognition as those married Filipino migrant workers, this unfortunate circumstance must be remedied.”

The bill amends Section 3 of RA No. 8042 to read as follows:

(B) ‘SOLO PARENT’ AS DEFINED UNDER SECTION 3 (A) OF REPUBLIC ACT NO. 8972, OTHERWISE KNOWN AS THE “SOLO PARENTS’ WELFARE ACT OF 2000;

(C) ‘DEPENDENTS’ REFER TO THE FOLLOWING:

(1) SPOUSE AND CHILDREN OF THE MARRIED OVERSEAS FILIPINO WORKER; AND

(2) CHILDREN OF THE SOLO PARENT OVERSEAS FILIPINO WORKER.

Likewise, the measure amends 35 of RA 8042 to read as follows:

“Sec. 35. Exemption from Travel Tax, Documentary Stamp Tax as Airport Fee. – All laws to the contrary notwithstanding, the migrant worker AND HIS OR HER DEPENDENTS shall be exempt from the payment of travel tax and airport fee upon showing of entitlement by the POEA.

The bill will be referred to the committee on ways and means for approval of tax provisions.

Source: congress.gov.ph

Related: BSP vows to speed up OFW bank creation

https://filipinotimes.net/news/2017/10/12/bsp-vows-speed-ofw-bank-creation/

Related: Huge prizes up for grabs in DOT’s ‘Bring Home a Friend’ program

https://filipinotimes.net/news/2017/10/11/huge-prizes-grabs-dots-bring-home-friend-program/

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