The House of Representatives has approved on third and final reading in its late-Tuesday session the proposed Overseas Filipino Workers (OFWs) Remittance Protection Act.
Voting 224 affirmative and zero negative, lawmakers passed House Bill (HB) 7951, which seeks to protect the hard-earned money remitted by OFWs against usurious interest rates and exorbitant fees charged by financial institutions.
The bill prohibits all banks and non-bank financial intermediaries offering remittance services to OFWs from raising their current remittance fees without prior consultation with the Department of Finance, the Bangko Sentral ng Pilipinas and the Philippine Overseas Employment Administration.
The measure said banks and non-bank financial intermediaries may impose fees for services rendered in sending money of OFWs to their immediate family members. However, the fees would be subject to a 50-percent discount.
The proposed bill, however, provides that the total deduction from the gross income of establishments providing discounts on remittance fees shall not exceed P24,000 per OFW every taxable year. It also provides for the DOF secretary, upon recommendation of the Bureau of Internal Revenue, to issue the revenue regulation for the purpose.
The bill allows establishments providing discounts on remittance fees to claim the same as tax deductions.
The measure said any person who will be found guilty violating this proposal face imprisonment of six months to up six years and a fine of P200 up to P750,000.