Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

FIFITEENTH CONGRESS
First Regular Session

2443

HOUSE BILL NO.
Introduced by Honorable Acmad M. Tomawis
EXPLANATORY NOTE

Section 18, Article II (Declaration of Principles and State Policies) of the 1987 Constitution
provides that "The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare."

This bill seeks to exempt Overseas Filipino Workers (OFWs) from the payment of taxes and
customs duties on motor vehicles brought into the Philippines.

Overseas employment plays a very important role in the financial. stability and economic
growth of our country. Last year, OFW remittances grew by 5.6 percent to $17.1 Billion, which
exceeded the central bank's four-percent projection. These remittances generate livelihood activities for
our people, particularly, in the countryside.

Thus, it is imperative that the welfare of these OFWs be given foremost consideration in the
agenda of the government. They are often referred to as the "modem heroes" yet they receive less
benefits and privileges from the government.

As a recognition of the OFWs’ immense contribution to our country's economy, this measure is
an affirmative response to their needs as it would provide them an incentive, to encourage them to save
a portion of their earnings from abroad to ensure that their families will have comfortable means of
transportation. It is aimed at making life more rewarding and fulfilling for OFWs when they return to
the Philippines for good. Indeed, owning a car is a cherished aspiration for most of our people,
particularly among the middle class of our society. Today, owning a car or a motor vehicle is a
necessity rather than a luxury for it facilitates mobility.

In view of the foregoing, approval of this bill is highly sought.

Af DM. i oniKwS

esentative Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session
HOUSE BILLNO._2443
Introduced by Honorable Acmad M. Tomawis
AN ACT
EXEMPTING OVERSEAS FILIPINO WORKERS FROM PAYMENT OF TAXES AND CUSTOM
DUTIES ON MOTOR VEHICLES BROUGHT INTO THE PHILIPPINES UNDER CERTAIN
CONDITIONS.
Be it enacted by the Senate and House of Representatives in Congress of the Philippines assembled:
SECTION 1. Any provision of existing laws to the contrary notwithstanding, Overseas Filipino

Workers (OFWs) shall be exempt from payment of taxes and custom duties on motor vehicles brought
into the Philippines under the following conditions:

(a) The overseas workers must have worked overseas for a continuous and uninterrupted period
of not less than five (5) years:

b) Only one (1) motor vehicle is allowed exemption for everyperiod of five (5) years; and

(c) The cost of acquisition of the motor vehicle in the country of origin does not exceed Ten
Thousand US Dollars ($10,000.00) or its equivalent in Philippine currency.

For purposes of this Act, "motor vehicle” refers to any sedan, utility, vehicle, or passenger van,

SEC, 2. The motor vehicle covered by the exemption cannot be sold,leased, donated or
otherwise disposed of unless the taxes, duties or charges due thereon shall have been fully paid.

SEC. 3. The Secretary of Finance, in coordination with the Department of Labor, shall
promulgate the necessary rules and regulations for the effective implementation of this Act.

SEC. 4. All laws, decrees, orders, rules and regulations, and other issuances, or parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 5. This Act shall take effect fifteen (15) days following its publication in at least two (2)
national newspapers of general circulation. Approved,