
Bill filing duties and taxes on balikbayan boxes for OFWs
Rufus Rodriguez, a representative from Cagayan de Oro City’s 2nd District, has introduced a bill that would exclude all balikbayan boxes that millions of overseas Filipino workers (OFWs) and other Filipinos living abroad send to their loved ones from all charges and taxes.
House Bill (HB) 6752, titled “An Act initiating the Expanded Balikbayan Program, modifying for the purpose Republic Act 6768, as amended by Republic Act 9174, and for other reasons,” contains the proposed legislation.
According to this clause, balikbayans are allowed to send home one box every month without paying taxes or duties under the National Internal Revenue Code or the Customs and Tariff Code, regardless of the value of the contents.
Additionally, the Bureau of Customs (BOC) would have to inspect arriving balikbayan boxes using “non-intrusive” techniques under the proposed change. Packages could only be opened in particular situations under the measure.
According to Rodriguez, 400,000 balikbayan boxes are sent out on average each month to the families and relatives of OFWs and other Filipinos living overseas.
These balikbayan boxes act as a permanent reminder of their dedication and selflessness in securing a brighter future for their families back home. They stand for their love and concern for their families, who must endure months or even years apart, he continued.
The Mindanao member cited a clause in the Constitution that states: “The State affirms work as a major social economic force” when he proposed the “tax exemption” and “no-opening-of-packages policy”. It will safeguard employees’ rights and advance their welfare.
Considering that OFWs and other Filipinos residing overseas send home billions of dollars and other foreign currencies each year, Rodriguez saw his plan as a method for the state and the government to repay them.
“Their remittances have a big impact on the economic development of our country. Some experts even claim that the money that our employees send home helps to keep our economy afloat,” he emphasized.
OFWs alone are anticipated to have sent USD30 billion to their loved ones in 2022.
According to current BOC regulations, each item must not exceed PHP150,000 in value before being subjected to non-intrusive inspection methods like X-rays or the employment of sniffer dogs.
Only when the consignor’s packing list and export declaration are not attached to the boxes, or when the BOC gets written notice that the exported items are restricted by law, are they allowed to be opened.
The measure also broadens the definition of a balikbayan’s family to encompass not just his spouse and kids but also his parents, grandparents, siblings, sisters, and fourth-degree relatives (whether full-blood or half-blood).
A “receptacle of personal and/or household effects, including livelihood instruments, in non-commercial amount,” is how a balikbayan box is described in the definition.
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