Experts see backlash from US remittance tax By Cai U. Ordinario
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ILIPINOS abroad may be forced to tap informal money senders or even consider the “black market” just to send remittances to their families in the Philippines. This is in light of a new Trump policy that imposes a 5-percent excise tax on remittances flowing out of the United States. The new policy will cover some 40 million people, including green card holders and nonimmigrant visa holders but will exempt US citizens. Former Socioeconomic Planning Secretary Dante B. Canlas told BusinessMirror that Filipinos may try to avoid the higher transaction fees just to send money to their families in the Philippines. “They can avoid the higher transaction costs arising from new taxes on remittances, for instance, by skirting banks and tapping informal money forwarders,” Canlas told this newspaper.
ASP ANGELS WALK 2025 GATHERS 40,000+ ADVOCATES AT SM MOA ARENA Held at the SM Mall of Asia Arena, the Autism Society Philippines’ Angels Walk 2025
brought together over 40,000 advocates in a nationwide movement for autism appreciation, accommodation, and acceptance. This year’s event also marks a milestone for SM Supermalls as it celebrates its 40th Anniversary, reinforcing its long-standing commitment to creating inclusive and accessible spaces for all. CONTRIBUTED PHOTO
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De La Salle University economist Maria Ella Oplas said if Filipinos abroad are pushed to the wall, they may resort to sending money through means that are “risky for Filipinos.” Oplas also said since remittances account for about 10 percent of the country’s GDP, this would also have a significant impact on the economy’s performance. “This plan by Trump to impose excise taxes against remittances is definitely bad news for OFWs (Overseas Filipino Workers) and their families. [It can also be bad] for our economic growth that is highly fueled by OFW remittances,” Oplas told BusinessMirror.
App-based e-wallets
HOWEVER, a Filipino economist who is currently working in an international think tank, Alvin P. Ang, said this new policy will increase the sending of remittances via app-based e-wallets. Ang said the pandemic has prompted many
OFWs to use app-based e-wallets to send remittances, favoring them over informal money forwarders and illegal money transfers. He said this could help OFWs send their remittances while skirting the excise taxes imposed by the US as these money transfers could be considered payments. “That’ll [new policy of US on remittance] have an impact on the Philippines. But unlike before where the corresponding banks are in the US, fintech now allows for direct remittance. This will increase the use of app based e-wallets,” Ang told BusinessMirror. “Families will not be much affected as even before the measure takes effect, senders would have found another way [to send remittances],” he also said.
Data and SDGs
ONE unfortunate impact of this behavior of
seeking informal or even illegal means of sending remittances could also skew the remittance data of the Philippines. “The PSA [Philippine Statistics Authority] or BSP [Bangko Sentral ng Pilipinas] can devise ways to estimate the leaks from remittances. Like forcing all money forwarders to register,” Canlas said. Apart from avoiding formal channels to send remittances, Filipinos can also consider working in other parts of the world where remittance costs are lower, Oplas said. She added that those in the United States can also frequent neighboring countries like Canada to send money to their families. This concept is similar to what is being done in Singapore and Johor Bahru. Another possible measure that OFWs can consider is to send goods and services to the See “Experts,” A2
BusinessMirror A broader look at today’s business Monday, May 19, 2025 Vol. 20 No. 218
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FEAST FOR EYES, SOUL Sunday provided an abundance of food for the eyes and the soul in separate locales in Metro Manila. The National Museum joined the International Museum Day celebration opening of the National Museum of Natural History, Anthropology and Fine Arts building to the public. To add
to the sensorial feast, the Philippine Youth Symphony Band (PYSB) performed inside the atrium of the Museum of Natural History with the Tree of life as the center of attraction. At the National Museum of Fine Arts, visitors lined up to have their selfie taken in front of the Spoliarium, Juan Luna's finest masterpiece; and appreciated Ang Kiukok’s large murals and Felix Resurreccion Hidalgo's painting, “Assassination of Governor Bustamante.” In nearby Pasay City, meanwhile, people were wowed by the 360 Led screen display in a mall that showcased the wondrous biodiversity of the sea. BERNARD TESTA/NONIE REYES
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By Reine Juvierre S. Alberto @reine_alberto
UBSIDIES to state-run firms rose to P22.589 billion in the first quarter, as the government channeled more budgetary support towards agriculture, housing and health care.
Latest data from the Bureau of the Treasury (BTr) showed governmentowned and-controlled corporations (GOCCs) obtained P22.589 billion in subsidies from January to March 2025, a 15.32-percent increase from the P19.587 billion extended during the same period a year ago. The national government provides subsidies to state-run corporations to fund operations not covered by corporate revenues or to finance specific programs or projects. Majority of the subsidies went to
major non-financial government corporations, for a total of P13.126 billion. Of these corporations, the National Irrigation Administration (NIA) received the highest subsidy of P7.7 billion, followed by the National Food Authority and National Housing Authority (NHA), respectively, with P2.250 billion and P1.346 billion. Meanwhile, 24 other government corporations were given a total of P9.274 billion during the first quarter, with the Philippine Crop Insurance See “GOCC,” A2
A LA SCHENGEN? D.O.T BACKS ASEAN SINGLE VISA ENTRY By Ma. Stella F. Arnaldo Special to the BusinessMirror
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HE Philippines made a push for the implementation of a common visa for members of the Association of Southeast Asian Nations (Asean). “The Asean tagline is ‘A destination for every dream.’ And the Asean visa certainly is part of that dream to be able to unify the Asean as a destination in terms of the strength of its natural assets, its unparalleled warmth and hospitality as a people, and as a culture. And in terms of the quality of experiences that we are able to offer, is one that is aspirational for us in the Philippines,” said Tourism Secretary Christina
Garcia Frasco at the recent Skift Asia Forum 2025 in Bangkok. “As a minister of tourism, it is a proposition that I have tried to make at every opportunity. I am glad to hear similar interest from our fellow Asean nations, and we are very hopeful that the subject matter will again come up as the Philippines hosts the Asean in 2026,” she added. The common Asean visa concept, patterned after the European Union’s Schengen visa, was proposed by Thai Prime Minister Srettha Thavisin last year as a way to increase inbound tourists in the region, and speed up economic growth. If approved, this means a tourist can visit nine Asean See “Schengen,” A2
PHL nickel ore exports Q1 earnings rise 45% By Ada Pelonia
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@adapelonia
HE country’s earnings from nickel ore exports jumped by 45 percent in the first quarter despite the slump in the international quotations of its base metal. Data from the Philippine Statistics Authority (PSA) showed that the value of nickel ores and concentrates exports surged to $144.81 million in the first three months of the year from $99.83 million in 2024. China was the top market of the Philippines’s outbound shipment of the raw materials in the reference period at $123.87 million, while Indonesia trailed at $20.94 million.
PSA data also showed that the volume of nickel ores and concentrates exports reached 4.51 million metric tons (MMT) in the first quarter, higher than the 4.19 MMT recorded in the previous year.
Export ban
THE Philippines is eyeing the ban on nickel ore exports to spur the development of local downstream industries and enable the Philippines to produce higher-value exports, which will create more jobs. Senate President Francis Escudero introduced the provision amending Senate Bill 2826, which will take effect after five years if signed into law. Dan Smith, head of research at See “PHL,” A2
PESO EXCHANGE RATES n US 55.7770 n JAPAN 0.3832 n UK 74.2225 n HK 7.1451 n CHINA 7.7396 n SINGAPORE 42.9947 n AUSTRALIA 35.7196 n EU 62.4200 n KOREA 0.0399 n SAUDI ARABIA 14.8711 Source: BSP (May 16, 2025)