It is really about time that the ceiling amount for taxing Balikbayan Boxes of our Overseas Filipino Woker (OFWs) be amended. The prevailing Law was made years ago, not updated in terms of current peso valuation.
SENATE BILL 2968
'Customs Modernization and Tariff Act' (CMTA) as sponsored by Senator Sonny Angara (Chairman of Senate Committee on Ways and Means).
Aims to promote higher Tax Exemption based on prevailing peso value.
PhP 9,999 valued goods and below items will not be taxed anymore.Tax exemption starts from at PhP 10,000 to PhP 150,000.00.
150,000 Tax Exemption
(minimum 3x a year applicability)
Great for OFWs not to be burdened for paying costly taxes for ‘pasalubong’ (presents) for their families and friends.
Does this mean that the items below 10,000 shall not be computed to accumulate the 150,000 ceiling? I think yes, but if somebody from the Authors of this modernization law reads this, PLEASE CLARIFY.
250,000 upto below 151,000 TE for OFW working for 5yrs and up
A good consideration for those OFWs who are capable of buying bulky appliances working five years straight and saving for quality appliances, gadget buys, signature bags and jewelries.
350,000 Tax Exemption for OFW working 10yrs more
Good intentions BUT may not be put on use, unless an OFW is buying a low-cost vehicle or an expensive motorcycle or signature items.
Retiring OFW much bigger TE
This is very thoughtful because once retiring, the OFW’s personal things can be brought home without the load of paying COSTLY taxes.
Items for personal use and not in large bulk for selling shall be COVERED by the Law. This shall be clarified as to HOW MANY of that particular item can be allowed. For example, if an OFW wants to buy jewelries for his love-ones (his wife children, nieces, nephews or siblings and parents).
This remains to be a 'BILL' and NOT yet a LAW unless ratified.