Migrante condemns Palace refusal to scrap OFW remittance charges

MANILA, Philippines - Overseas Filipino workers (OFWs) are just "milking cows" to President Gloria Macapagal-Arroyo because she refuses to remove charges on remittances from abroad. She should therefore avoid using the plight of OFWs as part of her State of the Nation Address (SONA) on Monday.

That's how Migrante International described the Arroyo administration's treatment of OFWs in a statement issued on Thursday.

Migrante, a militant alliance of OFW groups worldwide, want the charges scrapped to give OFWs and their families relief from skyrocketing prices of good and services, according to Migrante chairperson Connie Bragas-Regalado.

"While government through remittance taxes and big business, specifically banks, telephone carriers and other financial institutions are enjoying huge profits, OFWs are tightening their belts even more just to ensure that the average $200 that they send to their families can bring enough food to the tables,” Regalado said.

OFW remittances through banks reached another new record high of $1.4 billion in May, according to the Bangko Sentral ng Pilipinas.

Migrante estimates banks earn $1 billion monthly from charges on the remittances of 10 million OFWs.

That's based on a Migrante study that sets service charges at $15 to $22 for every remittance of $200.

The charges has not only kept the economy afloat, but they have given the government extra revenue through taxes imposed on remittances, such as the 0.15% documentary stamp tax for every transaction.

So for every $1 billion remitted monthly, the government is able to collect an average of $1.5 million, or P62 million. This is apart from all the other fees that government charges even before the a worker leaves the country.

But according to deputy presidential spokesperson Lorelei Fajardo, the government can't easily scrap the charges because they contribute greatly to the economy.

Migrante said it would join the People’s SONA to demand the scrapping of remittance charges and to support the workers’ demand for P125 wage increase, the removal of VAT on oil, and the junking of the oil deregulation law.

Migrante said their chapters in different countries will also launch their own protests on July 28, the date of Arroyo’s SONA. D'JAY LAZARO, GMANews.TV

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