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Tuesday, February 07, 2017

PROPOSED 12% VAT ON REMITTANCE CHARGES OPPOSED BY THE OFWS, SOLONS







House Bill 4774, a proposal to increase the value-added tax on the service fee of money remittances draws ire from the OFWs. The additional VAT on the service fee will  directly hit the remitters and not the remittance companies. 
Eman Villanueva, an OFW based in Hong Kong said that the additional VAT will be an additional burden for the OFWs like him  because the remittance companies are expected to pass the levy to the remitters rather than shouldering the cost themselves.
House Bill 4774, a proposal to increase the value-added tax on the service fee of money remittances draws ire from the OFWs. The additional VAT on the service fee will directly hit the remitters and not the remittance companies. Eman Villanueva, an OFW based in Hong Kong said that the additional VAT will be an additional burden for the OFWs like him because the remittance companies are expected to pass the levy to the remitters rather than shouldering the cost themselves. "We will fight it!," bayan Muna Party list representative Carlos Zarate said. He also stressed that not only the OFWs will be affected but even the domestic money senders as well. When an individual from Davao send a remittance for anyone in Manila or vice versa, it will be automatically subjected to 12% VAT. Ako Bicol Party List Representative Alfredo Garbin Jr. urged Congress to consider giving taxes to individuals with bigger income rather than OFWs. "Those who have greater ability to pay and those who have greater income should have a bigger tax burden," Garbin said. He also said that the Department of Finance seems to hide the proposed expansion of the VAT during forums and it was not been discussed. On the other hand, Asec. Paola Alvarez of the Department of Finance, clarified that the tax will be on the service fee charged by the remittance centers and not the actual amount. "We are cleaning up the VAT system to reduce leakages and unfair treatment. In the past, pawnshops are just pawning and don't transfer money, but now they do, so we have to consider this new business like any other service provider," she said. Alvarez said the bill targets businesses such as pawnshops, which are initially not registered as remittance centers but providing such services. RECOMMENDED: PRESIDENT DUTERTE WILL VISIT UAE AND KSA, HERE'S WHY MANPOWER AGENCIES AND RECRUITMENT COMPANIES TO BE HIT DIRECTLY BY HSW DEPLOYMENT MORATORIUM IN KUWAIT UAE TO START IMPLEMENTING 5%VAT STARTING 2018 REMEMBER THIS 7 THINGS IF YOU ARE APPLYING FOR HOUSEKEEPING JOB IN JAPAN KENYA , THE LEAST TOXIC COUNTRY IN THE WORLD; SAUDI ARABIA, MOST TOXIC "JUNIOR CITIZEN " BILL TO BENEFIT POOR FAMILIES
"We will fight it!," bayan Muna Party list representative Carlos Zarate said.
House Bill 4774, a proposal to increase the value-added tax on the service fee of money remittances draws ire from the OFWs. The additional VAT on the service fee will directly hit the remitters and not the remittance companies. Eman Villanueva, an OFW based in Hong Kong said that the additional VAT will be an additional burden for the OFWs like him because the remittance companies are expected to pass the levy to the remitters rather than shouldering the cost themselves. "We will fight it!," bayan Muna Party list representative Carlos Zarate said. He also stressed that not only the OFWs will be affected but even the domestic money senders as well. When an individual from Davao send a remittance for anyone in Manila or vice versa, it will be automatically subjected to 12% VAT. Ako Bicol Party List Representative Alfredo Garbin Jr. urged Congress to consider giving taxes to individuals with bigger income rather than OFWs. "Those who have greater ability to pay and those who have greater income should have a bigger tax burden," Garbin said. He also said that the Department of Finance seems to hide the proposed expansion of the VAT during forums and it was not been discussed. On the other hand, Asec. Paola Alvarez of the Department of Finance, clarified that the tax will be on the service fee charged by the remittance centers and not the actual amount. "We are cleaning up the VAT system to reduce leakages and unfair treatment. In the past, pawnshops are just pawning and don't transfer money, but now they do, so we have to consider this new business like any other service provider," she said. Alvarez said the bill targets businesses such as pawnshops, which are initially not registered as remittance centers but providing such services. RECOMMENDED: PRESIDENT DUTERTE WILL VISIT UAE AND KSA, HERE'S WHY MANPOWER AGENCIES AND RECRUITMENT COMPANIES TO BE HIT DIRECTLY BY HSW DEPLOYMENT MORATORIUM IN KUWAIT UAE TO START IMPLEMENTING 5%VAT STARTING 2018 REMEMBER THIS 7 THINGS IF YOU ARE APPLYING FOR HOUSEKEEPING JOB IN JAPAN KENYA , THE LEAST TOXIC COUNTRY IN THE WORLD; SAUDI ARABIA, MOST TOXIC "JUNIOR CITIZEN " BILL TO BENEFIT POOR FAMILIES

 He also stressed that  not only the  OFWs will be affected but even the domestic money senders as well. When an individual from Davao send a remittance for anyone in Manila  or vice versa, it will be automatically subjected to 12% VAT.
Ako Bicol Party List Representative Alfredo Garbin Jr. urged Congress to  consider giving taxes to individuals with bigger income rather than OFWs. "Those who have greater ability to pay and those who have greater income should have a bigger tax burden," Garbin said. He also said that the Department of Finance seems to hide  the proposed expansion of the VAT during forums and it was not  been discussed.

 On the other hand, Asec. Paola Alvarez of the Department of Finance, clarified that the tax will be on the service fee charged by the remittance centers and not the actual amount.
House Bill 4774, a proposal to increase the value-added tax on the service fee of money remittances draws ire from the OFWs. The additional VAT on the service fee will directly hit the remitters and not the remittance companies. Eman Villanueva, an OFW based in Hong Kong said that the additional VAT will be an additional burden for the OFWs like him because the remittance companies are expected to pass the levy to the remitters rather than shouldering the cost themselves. "We will fight it!," bayan Muna Party list representative Carlos Zarate said. He also stressed that not only the OFWs will be affected but even the domestic money senders as well. When an individual from Davao send a remittance for anyone in Manila or vice versa, it will be automatically subjected to 12% VAT. Ako Bicol Party List Representative Alfredo Garbin Jr. urged Congress to consider giving taxes to individuals with bigger income rather than OFWs. "Those who have greater ability to pay and those who have greater income should have a bigger tax burden," Garbin said. He also said that the Department of Finance seems to hide the proposed expansion of the VAT during forums and it was not been discussed. On the other hand, Asec. Paola Alvarez of the Department of Finance, clarified that the tax will be on the service fee charged by the remittance centers and not the actual amount. "We are cleaning up the VAT system to reduce leakages and unfair treatment. In the past, pawnshops are just pawning and don't transfer money, but now they do, so we have to consider this new business like any other service provider," she said. Alvarez said the bill targets businesses such as pawnshops, which are initially not registered as remittance centers but providing such services. RECOMMENDED: PRESIDENT DUTERTE WILL VISIT UAE AND KSA, HERE'S WHY MANPOWER AGENCIES AND RECRUITMENT COMPANIES TO BE HIT DIRECTLY BY HSW DEPLOYMENT MORATORIUM IN KUWAIT UAE TO START IMPLEMENTING 5%VAT STARTING 2018 REMEMBER THIS 7 THINGS IF YOU ARE APPLYING FOR HOUSEKEEPING JOB IN JAPAN KENYA , THE LEAST TOXIC COUNTRY IN THE WORLD; SAUDI ARABIA, MOST TOXIC "JUNIOR CITIZEN " BILL TO BENEFIT POOR FAMILIES

"We are cleaning up the VAT system to reduce leakages and unfair treatment. In the past, pawnshops are just pawning and don't transfer money, but now they do, so we have to consider this new business like any other service provider," she said.
Alvarez said the bill targets businesses such as pawnshops, which are initially not registered as remittance centers but providing such services.

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