The remittances of overseas Filipino workers (OFWs) would not be subjected to further value-added tax (VAT) rates, Senator Sonny Angara has assured.
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, reported Manila Bulletin.
“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,” Angara, who chairs the Senate ways and means panel, reportedly said. “We will make sure this won’t be an added burden to our OFWs.”
During the committee hearing Department of Finance (DOF) Undersecretary Karl Kendrick Chua reportedly 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 reportedly told the committee.
