Wednesday, March 3, 2010
The Department of Finance (DOF) has requested President Gloria Arroyo to veto the measure within the amendments to the Migrant Worker and Overseas Filipino Act, which exempts funds remitted to the Philippines by overseas Filipino workers (OFW) from documentary stamp tax.
It was said that the DOF had not been consulted, nor had it been able to give its opinion on the proposed exemption, as it had been inserted by a parliamentary committee without debate, rather than originating from parliament itself.
The DOF voiced the opinion that the documentary stamp tax, at 0.15% per remittance, could not be considered as too heavy, given the other benefits available to OFW, such as an income tax exemption.
The DOF has calculated that the exemption would cost the government some PHP1bn (USD21.7m) in tax revenues. This is an amount the DOF thinks it could ill afford to lose in a period when the government, it has said, will need to seek additional revenues if tax collections are to reach their projected outturn in 2010.