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GMA Network
9 hours ago
- Business
- GMA Network
OFWs in US face higher remittance tax under Trump 'big' bill
Sandi Agustin counts dollars as she and many other overseas FIlipino workers (OFWs) in America brace for a potential rise in the US tax for money remitted to families in the Philippines under the administration of Donald Trump. DAVE LLAVANES JR. NEW YORK — Thousands of overseas Filipino workers (OFWs) in the United States could soon be burdened with higher remittance costs if the proposed One Big, Beautiful Wall Act pushed by US President Donald Trump is enacted into law. Under the proposed measure, a 3.5% excise tax would be imposed on all money sent outside the US, including remittances to the Philippines. This means that non-US citizens sending money to their families back home could soon be paying significantly higher fees. For worker Sandi Agustin, who regularly sends money to relatives in the Philippines, the proposed tax is too heavy a burden. "For me, that's a big increase for ordinary workers like us here in America. Everyone knows that we don't just pick money up off the street here—we work hard for it. And instead of going entirely to our families, part of it will now go to taxes. It's really hard for us," Sandi told GMA Integrated News. Sandi sends money to her family in the Philippines about four times a month. Currently, she pays around $10 in transfer fees each time. But with the proposed excise tax, that amount could skyrocket to as much as $140 per month. "I usually send money weekly or bi-weekly. But if this tax becomes law, I might have to limit it to just once a month. If that's the rule, we'll follow it—we are law-abiding immigrants after all," she added. Arturo Reyes, a dialysis technician, shares Sandi's concern. He appealed to the US government to reconsider or reduce the proposed tax, especially since many Filipinos in America are already struggling to support families back home. According to Reyes, he typically pays $7 to send $1,000 to the Philippines. Under the new proposal, that fee could rise to $35 per $1,000 sent—a 500% increase. "That's a big deal for us because Filipinos here in America work double time just to send money home. I appeal to President Trump—please lower the 3.5%, make it even lower. I hope you understand the situation of all Filipinos here in America," Reyes said. Aside from higher fees, the proposed law also mandates stricter verification requirements for remittance centers, raising concerns that it might expose the immigration status of some senders, especially those who are undocumented. The United States remains the largest source of remittances to the Philippines, according to data from the Bangko Sentral ng Pilipinas (BSP). Last year alone, Filipino workers in the US sent about $14 billion back home. If passed, the One Big, Beautiful Wall Act could significantly impact the flow of remittances from the US, affecting countless Filipino families who rely on that financial lifeline for daily expenses, education, and medical needs. As of now, the bill is still pending in the US Congress, and many OFWs are closely watching developments, hoping for a more favorable outcome. — VDV, GMA Integrated News
The Star
a day ago
- Business
- The Star
Philippines central bank cuts policy rate by 25 bps, as expected
MANILA: The Philippine central bank cut its policy rate by 25 basis points to 5.25%, its governor announced on Thursday, taking the rate to its lowest level in two-and-a-half years. A Reuters poll showed 22 out of 25 economists had forecast the Bangko Sentral ng Pilipinas to lower its target reverse repurchase rate. The rest expected rates to stay unchanged at 5.50%. BSP Governor Eli Remolona said in a briefing that while the outlook for inflation had moderated and there was a need for accommodative policy, there were risks from rising geopolitical tensions and external policy uncertainty that had to be monitored. The BSP cut rates at three consecutive meetings from August last year, but then surprised markets by pausing at its February review. It delivered another 25 basis point rate cut in April. Last month, Remolona had said the BSP had room to deliver two more 25 basis point rate cuts this year but they may not be at consecutive meetings. - Reuters
The Star
a day ago
- Business
- The Star
Asian stocks, FX fall on Mideast woes; Philippine, Taiwan rate decisions in focus
Emerging Asian stock markets and currencies fell on Thursday, as cautious investors stayed away from riskier assets, weighing the possibility of the U.S. involvement in the Israel-Iran conflict. Iran and Israel traded further air attacks as U.S. President Donald Trump kept markets guessing on whether Washington would join Israel's strikes on Iranian nuclear facilities. The Israeli shekel weakened 0.2%. The Malaysian ringgit weakened 0.4% to a near one-month low, and the South Korean won fell as much as 1%. The Vietnamese dong touched a record low against the dollar. "Should the U.S. become involved in the Israel-Iran conflict, some sentiment deterioration would be warranted," analysts at DBS said. Local investors also focused on the monetary policy decisions by the Philippine and Taiwan central banks due later in the day. Taiwan's central bank is likely to maintain its policy rate, while Bangko Sentral ng Pilipinas (BSP) is expected to cut its key interest rate by 25 basis points, as slowing inflation allows it room to support the domestic economy amid weaker growth. The Taiwan dollar weakened 0.1% and the Philippine peso fell 0.4% to a more than two-month low. It is unlikely to be an easy decision for the BSP, considering peso's recent underperformance alongside rising oil prices, DBS said. BSP would likely prioritise domestic factors such as inflation and incoming activity-based indicators, which may lay the ground for further rate cuts, it added. In Thailand, political uncertainty weighed on sentiment as Prime Minister Paetongtarn Shinawatra's government was hanging by a thread, with coalition partners reconsidering their support after a major player's exit threatened to bring down the administration. The Thai baht fell 0.6% to a near three-week low and equities dropped as much as 2.4% to their lowest since April 9. Other stock markets also tumbled, with the MSCI index of Asian emerging market equities falling 1.3%. Equities in Taiwan slipped 1.4% and those in Malaysia fell 0.6%. Indonesia stocks dropped 1.6% to a one-month low, a day after the country's central bank paused its easing cycle. Bank Indonesia Governor Perry Warjiyo said the central bank remains open to further lowering borrowing costs, as inflation is expected to remain within target this year and next year. The decision came just hours before the U.S. Federal Reserve held rates steady, as expected, and retained projections for two quarter-point rate cuts this year. HIGHLIGHTS: ** Vietnam can borrow more from foreign lenders if needed, central bank says ** Brazil central bank raises rates, sees 'very prolonged' pause - Reuters
New Straits Times
a day ago
- Business
- New Straits Times
Risk aversion grips Asian stocks, currencies; Philippines cuts rates as expected
SINGAPORE/HONG KONG: Asian stock markets and currencies fell on Thursday on broader risk-off sentiment as cautious investors weighed the possibility of US involvement in the Israel-Iran conflict. Meanwhile, the Philippine central bank cut its policy rate by 25 basis points as expected. Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona stated that while an accommodative policy was needed, there were risks associated with geopolitical tensions and external policy uncertainty that had to be monitored. The peso was largely unchanged after the decision, still trading down 0.6 per cent near a two-month low. Iran and Israel traded further air attacks as US President Donald Trump kept markets guessing on whether Washington would join Israel's strikes on Iranian nuclear facilities. The Israeli shekel weakened 0.3 per cent. The Indonesian rupiah fell 0.6 per cent to a near three-month low and the Indian rupee dipped 0.3 per cent. The South Korean won fell as much as 1 per cent and the Vietnamese dong touched a record low. "Geopolitical developments remain fluid, and caution is warranted as we head into the weekend," said Christopher Wong, currency strategist at OCBC. With oil prices at risk of going higher as a result, net-oil importing currencies such as the peso, the rupee, the won and the Thai baht may be affected more than other peers, he added. The Taiwan dollar weakened 0.3 per cent ahead of its central bank's rate decision, in which it is likely to maintain its policy rate. The Thai baht fell as much as 0.9 per cent to a one-month low as political uncertainty weighed on already fragile sentiment. Thai Prime Minister Paetongtarn Shinawatra's government hangs by a thread, with coalition partners reconsidering their support after a major player's exit threatened to bring down the administration. In the near term, political uncertainty may weaken the baht further, as foreign investors lose confidence and sell Thai assets especially if the US dollar strengthens and gold prices continue to fall, said Poon Panichpibool, markets strategist at Krung Thai Bank. Bangkok equities dropped as much as 2.4 per cent to their lowest since April 9. Other stock markets also tumbled, with equities in Taiwan slipping 1.6 per cent and those in Singapore down 0.6 per cent. Indonesia stocks dropped 2.4 per cent to their lowest since May 14, a day after the country's central bank paused its easing cycle just hours before the US Federal Reserve held rates steady as expected.
Business Times
2 days ago
- Business
- Business Times
Philippines cuts key rate again as inflation stays below target
[MANILA] The Philippine central bank lowered its key interest rate by a quarter point for the second time this year, as widely expected, after inflation remained below target. The Bangko Sentral ng Pilipinas (BSP) reduced its overnight target reverse repurchase rate to 5.25 per cent on Thursday (Jun 19), matching the forecast by 29 of 30 economists in a Bloomberg survey. One saw a hold. The BSP stayed on an easing path after inflation slowed further in May, staying below the central bank's 2 per cent-4 per cent goal for a third month. The move is in line with governor Eli Remolona's signal last month for at least two more rate cuts this year, continuing a cycle of reductions that started in August. Oil price gains due to the Israel-Iran conflict, however, could stoke inflation in the nation heavily reliant on fuel imports. The Philippine peso has also weakened amid global risk aversion. Remolona said on Wednesday that it's futile to intervene in the currency market to support the peso that's fallen nearly 3 per cent against the dollar this month – the biggest loser in Asia. The move comes a day after Bank Indonesia paused to stabilise its currency in the face of the trade war and Middle East tensions. The Federal Reserve similarly held its benchmark rate, with officials saying uncertainty over the economic outlook was still high. The rate cut will nonetheless help support the South-east Asian economy, which expanded slower than expected last quarter, partly due to weaker investment growth as US President Donald Trump's tariff threats hurt global sentiment. BLOOMBERG
