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Angara pushes for tax exemption Balikbayan Boxes

Sen. Sonny Angara is proposing tax exemption for Balikbayan boxes. (Screen grabbed from internet)
Sen. Sonny Angara is proposing tax exemption for Balikbayan boxes. (Screen grabbed from internet)

Senator Sonny Angara said Thursday he is proposing higher tax exemption on the amount of goods and items from overseas Filipino workers (OFWs) who sends their goodies via the “Balikbayan” (repatriate) boxes.
 
Angara, chairman of the ways and means committee, said his committee is now prioritizing the Customs Modernization and Tariff Act (CMTA) which aims to introduce reforms to the Bureau of Customs including the increase in the ceiling of tax- and duty-free items and goods from OFWs from the present P10,000 to P150,000.
 
The BOC has recently announced that it may impose tougher measures on balikbayan boxes for fear that these tax-free packages are being used by traders to smuggle goods into the country.
 
As it receives approximately 400,000 balikbayan boxes every month, the BOC cites an average revenue loss of P50 million per month or P600 million a year from unscrupulous traders abusing the consolidated shipments.
 
The BOC said some packages, which should not exceed P10,000 as provided under Executive Order 206 in 1987, were found to be “spilling with undervalued items and under-declared contents” during the bureau’s spot checks.
 
“We need to update this outdated value. P10,000 is now too small and will not even justify the cost of enforcement if we recover goods slightly over this value. Let’s just focus on bigger fish and big time violators given our limited enforcement capacities,” Angara said.
 
The lawmaker further stressed that increasing balikbayan boxes’ tax exemption cap means “doing justice to OFWs who remit billions of pesos every year.”
 
The proposed CMTA also provides for a less intrusive examination of goods brought in to the country.
 
After the BOC’s announcement on the increase in number of random inspection of balikbayan boxes, many OFWs have turned to social media to express their disappointment and complaints about items in their balikbayan boxes that were reportedly stolen or damaged upon inspection.
 
The lawmaker further stressed that increasing balikbayan boxes’ tax exemption cap means “doing justice to OFWs who remit billions of pesos every year.”
 
The proposed CMTA also provides for a less intrusive examination of goods brought in to the country.
 
After the BOC’s announcement on the increase in number of random inspection of balikbayan boxes, many OFWs have turned to social media to express their disappointment and complaints about items in their balikbayan boxes that were reportedly stolen or damaged upon inspection.
 
Angara said that while random inspection is allowed under the current law, he is appealing to the BOC officials to speed up the processing of these packages and treat them with utmost care and respect. (Joel C. Atencio)

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