WITH an overwhelming 174 votes, the House of Representatives on Tuesday approved on third and final reading a bill protecting and providing a hefty discount as well to the remittances sent by overseas Filipino workers to their families back home.
Lawmakers gave their green light to House Bill (HB) No. 10959 (Overseas Filipino Workers Remittance Protection Act), entitling them to a 50 percent discount on fees or charges imposed on remittances, either by banks or non-bank institutions, to their families in the Philippines.
Philippine remittances of OFWs have an average of more than USD30 billion yearly — the fourth largest in the world after India, Mexico and China — keeping the local economy afloat for several decades now.
“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,” Speaker Ferdinand Martin G. Romualdez said.
The measure, authored mainly by Senior Deputy Speaker Aurelio “Dong” Gonzales Jr. (Pampanga 3rd District), was sponsored in the plenary by House Assistant Majority Leader Jude Acidre (Tingog Party-list), chairman of the House Committee on Overseas Workers Affairs.
“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.
All banks and non-bank financial intermediaries, under the approved bill, are prohibited from raising their current remittance fees without prior consultation with the Departments of Finance (DOF), of Migrant Workers (DMW) and the BangkoSentral ng Pilipinas (BSP).
The provisions of the Act shall be applicable to all OFW remittances, whether voluntary or mandated by law, orders, issuances or rules and regulations.
The measure also listed several “prohibited acts,” violation of any of which shall be subject to a penalty of imprisonment of a minimum of six (6) months to a maximum of six (6) years, and a fine of P50,000, but not exceeding P750,000.
The bill prohibits the following:
A) 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,
B) Taking of foreign exchange remittances without the consent of the OFW or beneficiary,
C) Imposition of remittances fees in excess of those prescribed in this Act,
D) Failure to post in a conspicuous place of the establishment the Philippine Peso rate of the foreign currency being transacted; and,
E) Failure to conduct consultation with DOF, BSP and DMW before raising remittance fees
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