Government May Impose 12% VAT for OFWs Remittances

Philippines - The government plans to charge or impose a 12 percent Value Added Tax (VAT) on remittances or money sent by overseas Filipino workers (OFWs) in the Philippines.

OFW’s are dubbed as the “Bagong Bayani” (New Hero) of the country will surely explode in anger together with their families if the plans of the Government succeed.


And because there is no any cost or any contribution for the welfare of OFWs, legislators in the House of Representatives are ready to ward off the said Government plans of taxing the money sent by OFWs in different parts of the world.

According to Bicol party-list Rep. Alfredo Garbin the Government has no right to reduce or have a share in the money of all OFWs where they shared their blood and tears. The Government is not spending money related to remittances, there is no expenditure for this. You do not even built a road, a building, a bridge too why charge OFWs VAT? Said Gardin.

As of now OFWs remittances are exempted from VAT, but the government wants to put this tax under the Tax Reform Packages filed in Congress. Should the new impose taxes pass in the Congress it will reduce the income of OFWs that came from their blood and sweat and hard-earned money abroad.

It will be greatly affected and a big impact for the family of Filipino workers since all major commodities, including medicines will not be free from VAT.
source: Abante