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Bill entices OFWs to do 'pasalubong' shopping back home with $6,000 tax-exemption ceiling

Published Dec 11, 2022 12:32 pm

The more "pasalubongs" brought here at home, the better.

(Denny Muller/ Unsplash)

House Minority Leader and 4Ps Party-list Rep. Marcelino Libanan has moved to increase to $6,000 the aggregate tax-exempt purchase that returning overseas Filipino workers (OFWs) and other balikbayans (returnees) may make at duty-free shops operated by the Department of Tourism (DOT).

Libanan penned and filed House Bill (HB) 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,” he said.

According to the veteran solon, balikbayans are currently entitled to make only up to $3,500 in tax-exempt purchases at DOT duty-free shops.

The $3,500 ceiling is split into up to $1,500 worth of discretionary consumer goods, plus up to $2,000 worth of “livelihood tools” under the exclusive “kabuhayan” shopping privilege.

Libanan’s bill would increase to $3,000 the limit for discretionary items, and also raise to $3,000 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,” he said.

Related Tags

balikbayan marcelino libanan 4PS Party-list balikbayans OFWs 121122 duty-free DOT Pasalubong
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