Bill 9032 or the Overseas Filipino l{orkers (0FW) Rernittance Protection Act on second reading. In deference to the country's modern heroes, the bill intends to protect the money earned by migrant workers by offering discounts on thdir remittances t0 their families in the Philippines. The bill provides effective mechanisms to protect Ot the rights and interests of the overseas rqorkers who N contribute significantly to the national economy thr0ugh foreign exchange remittances. lv f' E This will also provide tax incentives for the !o lrl esta.blishments providing for dlscourtts.
'These OFW remittances are transferred from
e o the OFW to intermediaries, such as financial and z non-bank financial institutions, before they reach o their beneficiaries. In the course of the fund = transfer, the amounts remitted are subject to several z fees and high remittance charges which result in c4 the depletion of the amount to be remitted and :EI received,' Pampanga Rep. Aurelio Gonzales Jr., 4 principal autho| of the bill, said. 5 HB 9032 provides mandatory 10-60 percent discount z depending 0n the amo\rnt of remittances from banks and non-bank finanpial intermediarles. = This will also provide tax incentives for the establishments providing for discounts. They can claim these discounts as tax deduction based on the cost of services rendered for the 0Flrys but the tax deduction will be mandatory and shall grant incentives for remittance establishments as they provide the discounts. Ilowever, the bill will not allow the imposition of remittance fees that exceeds the prescribed charge provided in the bill. Financial intermediaries offering remittance serYices to OFW are " pvgn -'s" prohibited from increasing their current fe€s without consultation with the Department of Finance (DoF), Bangko Sentral ng Pilipinas (BSP) and the Philippine Overseas Employment Administration (P0EA). Any person who will violate the prohibitions of this bill wiu be penalized accordingly while institutions governed by BSP will be charged with fines and sanction provided under the New Central Bank ' Act, General Banking Law of2000 and pertinent banking rules. The bill also mandates Doq BSP and P0EA to provide financial education programs for the families of the overseas workers. Financial education sho u ld include managemeni, budgeting, and investment options to ensure proper handling of eamings and remittances.