Monday, November 25, 2024

Solon Eyes $6K Tax-Exempt Shopping Perk For OFWs, Balikbayans

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Solon Eyes $6K Tax-Exempt Shopping Perk For OFWs, Balikbayans

9

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House of Representatives Minority Leader Marcelino “Nonoy” Libanan wants to raise to USD6,000 the aggregate tax-exempt purchase that returning overseas Filipino workers (OFWs) and other balikbayans may make at duty-free shops operated by the Department of Tourism (DOT).

Libanan has filed House Bill No. 6472, which seeks to upgrade the benefits and privileges enjoyed by returning Filipinos under a 33-year-old law that established the Balikbayan Program.

“Once enacted, we expect our measure to encourage a greater number of balikbayans to make their purchases here at home in DOT duty-free shops shortly after arrival, rather than in foreign stores and help the Philippine economy generate more dollars,” Libanan said in a news release on Sunday.

Balikbayans are currently entitled to make only up to USD3,500 in tax-exempt purchases at DOT duty-free shops.

The USD3,500 ceiling is split into up to USD1,500 worth of discretionary consumer goods, plus up to USD2,000 worth of “livelihood tools” under the exclusive “kabuhayan” shopping privilege.

Libanan’s bill would increase to USD3,000 the limit for discretionary items, and also raise to USD3,000 the separate threshold for livelihood tools ranging from computers and sewing machines to carpentry gadgets and farm implements.

“The upward adjustments in the allowable tax-exempt purchases are needed to account for decades of cumulative price inflation and to ensure that the shopping privileges remain substantial for the benefit of balikbayans,” Libanan said.

Congress enacted the Balikbayan Program Law in 1989 to encourage Filipinos overseas to come and visit their homeland.

Under the program, balikbayans refer to Filipino citizens who have been out of the country for at least one year, OFWs, or former Filipino citizens and their family members who have been naturalized in a foreign country and who return to the Philippines.

Balikbayans may make their tax-exempt purchases at DOT duty-free shops within 15 days from arrival, or during the Christmas season (from Nov. 15 to Jan. 15 of every year), within 30 days from arrival.

The DOT runs three duty-free shops at the Ninoy Aquino International Airport Terminals 1, 2 and 3.

The department also has five other duty-free shops at Fiestamall in Paranaque City, the Mall of Asia Complex in Pasay City, Mactan-Cebu International Airport, Kalibo International Airport and Iloilo International Airport. (PNA)

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