A one-percent excise tax on remittances under the proposed "One Big Beautiful Bill" in the United States (US) could reduce Filipino remittances by $1.9 billion, or approximately ₱108 billion, in 2026, the Department of Finance (DOF) estimated.

Finance Undersecretary and Chief Economist Domini Velasquez stated on Tuesday, July 15, that the $1.9 billion represents the value of US remittances projected to be impacted by the new tax set to take effect next year.

This amount is equivalent to about 5.2 percent of the DOF's initial 2026 overseas remittance projection of $36.5 billion.

Velasquez, however, noted that this figure accounts for barely one percent of the country’s economy, as measured by the gross domestic product (GDP).

The “One Big Beautiful Bill,” championed by US President Donald Trump, is expected to affect 12.8 percent of total overseas remittances. This figure is based on a DOF survey focusing on the number of Filipinos receiving money from the US.

Velasquez noted that this is “much smaller” than the 40 percent indicated by Bangko Sentral ng Pilipinas (BSP) data.

She clarified, “because the BSP data is banking data. Some of those remittances came from the Middle East, for example.” The BSP regularly points out in its monthly reports that several money transfer centers abroad send money through partner banks, known as correspondent banks, many of which are based in the US.

“What will be taxed are the workers, green card holders in the US. They should be working. The way we read it, that’s the intent of the bill. It’s not the Filipinos who are already US citizens,” Velasquez explained.

Meanwhile, BSP data showed that money sent through banks by overseas Filipinos (OFs) increased by 2.9 percent to $2.66 billion in May, from $2.58 billion in the same month last year.

At end-May, remittances from land-based OFs rose 3.3 percent year-on-year to $10.94 billion, while sea-based workers remitted $2.82 billion, a two percent increase.

For the first five months of the year, cash remittances predominantly originated from the United States, accounting for 40.2 percent of the total, followed by Singapore at 7.4 percent, Saudi Arabia at 6.4 percent, and Japan at five percent, the BSP noted.

The BSP has projected OF cash remittances to increase to $35.5 billion this year from $34.5 billion last year.