JEDDAH, 3 May 2005 — A Filipino group in Riyadh has asked the Bureau of Customs in Manila yesterday to clarify its reported new policy regarding Filipino workers returning from abroad amid fears that the government might be trying to take back the benefits it had accorded Overseas Filipino Workers (OFWs).
“While we understand the pressing need of the government to improve its tax collection and raise revenues, it should not further burden our kababayans working overseas,” the Pusong Mamon Task Force-KSA said in an e-mail to Bureau of Customs chief Albert Lina and Finance Undersecretary Emmanuel Bonoan,
Task force action officer Rashid Fabricante referred to news reports from Manila saying that starting yesterday, the Bureau of Customs will perform stringent inspection on all belongings of arriving passengers at the Ninoy Aquino International Airport to search for any taxable items in an effort to meet the daily collection quota set by new customs chief Lina.
“With the new quota, customs examiners will be forced to impose taxes and duties on all items brought in by returning Filipino residents, balikbayans, and even foreign tourists,” said one report being circulated via the Internet.
Officials noted that while the Tariff and Customs Code of the Philippines provides for the imposition of taxes on everything taxable that passengers bring in to the country, customs examiners have maintained a more lenient policy in line with the government’s campaign to promote the country as a tourist destination and the NAIA a “tourist-friendly” airport.
“Tax and duty collection at the premier airport has considerably dropped after ‘commuters’ or ‘viajeras’ have opted to bring in their wares using sea freight due to lower costs.
“Moreover, daily collection has dropped to an average of P80,000 after the government ordered the Customs Bureau to exempt Overseas Filipino Workers and balikbayans from getting taxed,” said the report.
Under the new policy, customs examiners are supposed to inspect all the belongings of arriving passengers and “impose duties and taxes on brand-new items that include ready-to-wear clothes, shoes, watches, jewelry, cameras, electronic gadgets, and even appliances to meet the daily target.”
In his letter, Fabricante reminded Lina and Bonoan of Section 36 of the Migrant Workers and Overseas Filipinos Act of 1995 (RA 8042) along with other Executive Orders issued by former President Cory Aquino and President Fidel V. Ramos providing exemptions for OFWs from custom duties and taxes.
“We are apprehensive that returning Overseas Filipino Workers may hastily be charged of duties and taxes from their used home appliances, personal effects (electronics) or other household goods,” Fabricante said.
The Philippine government is scrounging for more sources of revenue amid a burgeoning fiscal deficit.
Overseas Filipinos, while having been allowed to participate in Philippine elections, were exempted by a 1997 law from paying taxes on income earned abroad in recognition of their huge combined contribution to the national economy.
