Consulate General of the Philippines in New York
News Release, 13 September 2004

Palace nixes plan to tax OFWs

Instead of giving additional tax burden to the overseas Filipino workers (OFWs), the government would rather push for the passage of the eight priority revenue measures in the House of Representatives.

In a press briefing following a thanksgiving lunch he tendered for the Malacanang Press Corps at the Emperor Villa Seafood Restaurant in Binondo, Manila, Press Secretary Ignacio Bunye said that the President is not amenable to taxing the OFWs.

"The President is putting her foot down on this proposed tax," said Bunye, referring to the proposed re-imposition of the gross income tax on all OFWs now being studied by the Department of Finance (DOF).

He said the Palace instead is pushing for the passage of the eight priority measures in the House of Representatives.

"We are sticking to the eight revenue measures that we have discussed before and we would like this prioritized. The tax on OFWs is not one of them," Bunye said.

The President had earlier asked Congress to consider eight new tax measures namely, including increasing to P2 the specific taxes on petroleum products; increasing the value-added tax (VAT) to 12 percent and later to 14 percent; indexing sin taxes; rationalizing government fees and charges; taxing the windfall telecommunications profits; shifting to the gross income-tax system; granting a general tax amnesty; and the lateral attrition law.

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