Impending Documentary Stamp Tax on Remittances

Press Release
April 23, 2008

Impending Documentary Stamp Tax on Remittances, an additional burden exploiting OFWs and families in time of soaring prices of commodities – Migrante ME

Migrante Middle East, an alliance of overseas Filipino workers’ organizations in the Middle East today said that the impending Documentary Stamp Tax imposition on all international transfer including OFW remittance is but another scheme of state exaction burdening OFWs and families.

“We deplore the Philippine Congress formulating tax legislation, courtesy of pro-Arroyo Senators and Congressmen, devoid of consultation and public hearing imposing the so called Documentary Stamp Tax (DST) on all international transfer including OFWs remittances. This impending tax imposition on OFWs remittance is but another scheme of state exaction burdening and exploiting OFWs and families in time of soaring prices of food and relatively weak dollar exchange,” said John Leonard Monterona, Migrante ME regional coordinator.

Monterona said Migrante and other OFWs have got the information that the Arroyo administration will soon be imposing a Documentary Stamp Tax (DST) on all international transfer from a branch of Western Union based in the United Arab Emirates.

“Our sources have confirmed this impending imposition of Documentary Stamp Tax equivalent to 0.15% of the remitted amount,” Monterona continued.

“The said documentary stamp tax (DST) will cover all remittance companies and banks in the Philippines as confirmed by our sources,” Monterona added.

Monterona said that the information of impending imposition of DST has been corroborated by other OFWs who have been hearing the issuances of Circular on this regard coming from different Philippine Embassies in the Middle East.

Monterona further said that OFWs and families will obviously reject this additional tax imposition on OFWs’ meager income, where most OFWs are receiving salary ranging from US$250 to US$400 monthly, especially in time of economic crisis.

“If an OFW is to send US100 for his wife, which is Php.4, 160 based on the current exchange rate where 0.15% as (DST) amount is Php. 6.24 to be deducted from his remittance, (aside from the remittance fee of 35 Riyals (Php.130) charged by remittance center where he send his remittance). The remittance to receive by OFW family is obviously not enough in time of soaring prices of food and basic commodities,” Monterona added.

Monterona explained that tough 0.15% (DST) is relatively small but if imposed to almost 10-Million overseas Filipinos abroad this is roughly reach to an amount of Php. 62-M monthly income by the Arroyo administration.

The migrant leader said that the left and right exactions and tax imposition by the Arroyo administration in the guise of dubious programs for OFWs and family such as the hedge fund, especial deposit for OFWs, mandatory coverage of OFWs to Pag-IBIG, and now the impending imposition of documentary stamp tax on OFWs remittance are all intended to extract money from OFWs and families so that it has enough easy money to pay back its political minions’ continued support both from the national and local politicians and maybe in preparation of the upcoming national and local elections come 2008.

“The Arroyo administration is really bankrupt and is solely dependent now on OFW remittance and would even dare get a share from OFWs meager income through the imposition of documentary stamp tax on OFW remittance and the like; but on the other hand, the Arroyo administration is very neglectful on its state responsibility to protect and advance OFWs rights and welfare as manifested by the increasing numbers of OFW victims who ran away and stranded in deportation centers and resource centers managed by Philippine embassies,” Monterona added.

The migrant leader said that the Arroyo administration, being remiss on its state responsibility to OFWs is by-default does not deserve OFWs support and in fact OFWs are calling others for civil disobedience against the most corrupt and most anti-people and anti-OFWs Arroyo administration.

Monterona said that the almost 10-M OFWs and their families in the homeland are now enrage and would support a campaign by Migrante, other OFW groups to scrap this documentary stamp tax (DST) on OFW remittance and other anti-OFW proposed legislation which purpose is only to extract money out of their hard labor.

“Migrante, OFWs and families vow to oppose this (documentary stamp tax); and will campaign for OFWs exemption in paying service fee or charges for their remittance that at least could give them ease in time of economic crisis aggravated by the Arroyo administration ,” Monterona ended. # # #

For reference:
John Leonard Monterona
regional coordinator
Migrante Middle East
Mobile No.: 00966 564 97 8012

http://ofwlayf.com/015-tax-to-all-international-transfers-in-the-philippines/

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waaaa.. 15% is too much. or is worst. :cry: wawa naman yung mga OFW na nabibilang sa group hindi kataasan ang sahod. 

Tags: Tax, OFW, News

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