Bill seeks reduction of remittance fees
A BILL seeking to reduce remittance fees by 50% has been filed in the Senate, a move aimed at protecting overseas Filipino Workers (OFWs) from excessive charges.
Senate Bill No. 1074, filed by Senator Jose “Jinggoy” P. Ejercito Estrada, seeks to impose a 50% cut on remittance tax, while allowing banks and financial intermediaries to claim the discounts as tax deductions.
“This is a win-win situation for our OFWs and their families, as well as for banks and remittance centers,” he said in a statement.
The proposed measure also requires banks and financial intermediaries to clearly post peso-equivalent exchange rates in remittance centers to prevent hidden charges.
“The Philippine peso equivalent of the amount as remitted shall be the same amount that shall be received by the beneficiary of the remittance,” the bill states.
It also prohibits the misappropriation of funds, unauthorized deductions, excessive fees, and any increase in remittance charges without prior consultation with concerned government agencies.
The proposed measure imposes a fine ranging from P50,000 to P750,000, up to six years of imprisonment, or other additional sanctions under existing banking laws.
Institutions governed by the Bangko Sentral ng Pilipinas that deny receipt of remittances may likewise be given fines, penalties, and sanctions.
In cases where the violation is committed by a corporation or partnership, the liability will be imposed on the president, managing director or partner, general
The bill also seeks the creation of a free mandatory financial literacy program for OFWs and their families. — Adrian H. Halili
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