House OKs bill protecting foreign remittances on final reading

THE HOUSE of Representatives has approved on third and final reading a measure protecting foreign remittances from excessive interest rates and fees levied by financial institutions on overseas Filipino workers (OFW).

With a 174-0-0 vote, the chamber approved House Bill (HB) No. 10959, a measure providing a 50% discount on remittance fees imposed on OFWs and their immediate family by banks and other financial intermediaries, while allowing them to claim the discounted amount as a tax deduction.

“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 expenses deductible from their gross income,” Party-list Rep. Jude A. Acidre said in a statement.

Banks will no longer be allowed to raise their remittance fees without prior consultation with the Finance and Migrant Workers departments and the Philippine central bank, according to the measure.

Also on Tuesday, the House approved in a 182-0-0 vote a measure mandating free freight services of relief goods to disaster-stricken areas, a bill seen helping expedite the delivery of much-needed goods and necessities during calamities.

“[HB No. 10924] creates a vital partnership between government and the private logistics sector, requiring free freight services for relief goods while providing tax incentives to participating carriers,” House Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said in a separate statement.

Lawmakers also unanimously voted for a bill enjoining private companies and government institutions to hire senior citizens. HB No. 10985 hurdled the chamber in a 173-0-0 vote, which incentivizes private companies hiring the elderly with a 25% tax deduction on their gross income.

They also voted 179-3-1 to HB No. 10535, which updates the Philippine Tax Code and would encourage domestic distillers to denature locally produced or imported alcohol. — Kenneth Christiane L. Basilio