PHILIPPINES. State-owned Duty Free Philippines (DFP) is hopeful of a big boost to its business after House Minority Leader and 4Ps Party-list Representative Marcelino Libanan introduced a bill to increase the tax and duty free allowance for returning overseas Filipino workers (OFWs) who buy on or post-arrival.
The Balikbayan programme, which applies to any Filipino citizen who has been continuously out of the Philippines for a period of at least one year, currently allows a US$3,500 duty free allowance at DFP arrivals and post-arrivals stores.
The allowance comprises up to US$1,500 of discretionary consumer goods (led by core travel retail categories such as confectionery, beauty, consumer technology and alcohol) up to US$2,000 worth of kabuhayan (‘livelihood tools’).
Libanan’s bill seeks to increase the total allowance to US$6,000, split equally between discretionary consumer goods and the separate kabuhayan allowance.
Duty Free Philippines Chief Operating Officer Vicente Pelagio A. Angala told The Moodie Davitt Report, “Regarding this bill, I hope they can expedite approval soon. This will help increase our sales and revenue.”
“Once enacted, we expect our measure to encourage a greater number of balikbayans to make their purchases here at home in DOT duty-free shops shortly after arrival, rather than in foreign stores, and help the Philippine economy generate more dollars,” Manila Bulletin quoted Libanan as saying.
“The upward adjustments in the allowable tax-exempt purchases are needed to account for decades of cumulative price inflation, and to ensure that the shopping privileges remain substantial for the benefit of balikbayans,” he added.
