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Economic conditions

Malacanang Rejects Proposal to Levy New Taxes on Overseas Filipino Workers

Strategic Insights

— 1 min read

The administration of Philippine President Gloria Macapagal Arroyo has rejected a proposal to impose new taxes on overseas Filipino workers (OFWs), deeming them modern-day heroes of the country. According to Palace officials, the proposed tax is not among the eight tax measures the administration is pushing for passage in Congress. These measures include a tax on windfall profits of telecommunications companies, a tax on sin products, and a shift to gross income taxation.

Key Takeaways:

  • The Malacanang administration has rejected a proposal to levy new taxes on overseas Filipino workers (OFWs), considering them modern-day heroes of the country.
  • The proposed tax is not among the eight tax measures the administration is pushing for passage in Congress, which include a tax on windfall profits of telecommunications companies, a tax on sin products, and a shift to gross income taxation.
  • The executive branch has submitted its tax proposals to the House committee on appropriations for deliberations, giving lawmakers time to evaluate and debate the measures before Congress goes on a month-long recess on September 24.
  • The passage of the tax proposals is urgent to help raise much-needed revenues to pay off the country's ballooning debts and balance the national budget.
  • Government planners believe Congress recognizes the extent of the country's financial problem and will take positive action on the proposed measures.

Statistics:

  • The administration is pushing for eight tax measures to address the country's financial problem.
  • The proposed tax on windfall profits of telecommunications companies, sin products, and shift to gross income taxation aim to raise much-needed revenues to pay off the country's ballooning debts.
  • The national budget is expected to be balanced through the passage of the tax proposals.
  • Congress is set to go on a month-long recess beginning September 24.

Sources:

  • PNA (Presidential News Agency) founder and managing editor: at the Emperor Villa Seafood Restaurant
  • Zaldy B. Serrano, Philippine News Agency (PNA), "Malacanang Rejects Proposal to Levy New Taxes on OFWs"

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