Remittances may slow if slapped with tax, LBC warns

Cathy Yang, ABS-CBN News

Posted at Feb 08 2017 12:28 PM

MANILA - Fewer people will send money if government pushes through with its plan to tax remittances, one of the country’s largest cargo and money forwarding services said Wednesday.

The levy on overseas and domestic remittances is part of President Rodrigo Duterte’s reform package, which seeks additional sources of revenue to offset a reduction in income taxes.

“If there's a tax, they’ll probably end up sending less. If they send less, our business will be affected,” LBC Express president Mike Camahort told ANC.

Camahort said LBC would focus on maintaining the quality of its service instead of adjusting its pricing should Congress approve the remittance tax.

“It’s more service oriented, quality service rather than price, and of course the reliability and the trust, the assurance that the money is there for them to be taken, cashed out,” he said.