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Saturday, December 3, 2011

OFW Group Rejects Taxes on SSS, Pag-IBIG Contributions

Mga OFW Kabayan, any opinion on this regards?  If you have any comment kabayan, express yourself.  Kanya-kanya nga lang.  Dahil may mga negative at positive naman ang tao about this write ups...

(From Manila Bulletin, Dec. 3, 2011)MANILA, Philippines — A Filipino migrants’ rights group has thumbed down the Bureau of Internal Revenue’s (BIR) plan to impose taxes on overseas Filipino workers’ (OFWs) contributions to the Social Security System (SSS) and to the Home Development Mutual Fund, popularly known as Pag-IBIG.

“We know that it is the BIR’s duty to raise and collect taxes but the government must be reasonable and fair (enough to) consider the present socio-economic plight of our people,” said John Leonard Monterona, regional coordinator of Migrante-Middle East (M-ME).

The BIR earlier this week confirmed that it issued a circular to study the imposition of taxes to SSS and PAG-IBIG members who have contributed more than the amount allowed by law, as it is considered as an “investment”, and therefore should be taxed.

The BIR stressed that the proposal is still under study.

Monterona reckoned that imposing taxes on OFWs’ voluntary contributions to SSS and PAG-IBIG would “defeat the very intent, purpose and spirit” of the government’s programs on social security and housing loans.

He added that these contributions should not be classified as “million peso investments”, but rather investments that are only large enough to secure the OFWs and their families’ needs when retirement time comes.

The Saudi-based OFW leader likewise warned that many Filipino migrant workers would stop their contributions once the BIR begins to tax their SSS and PAG-IBIG contributions.

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