US remittance levy will deeply hurt Filipino families

The act of sending money home is one of the most enduring symbols of Filipino resilience and devotion. More than anything, each remittance from an overseas Filipino is a quiet act of love, a testament to selflessness, and a pillar of survival for millions of families. Now, this lifeline is facing a serious threat.

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Under a sweeping tax and immigration reform package championed by United States President Donald Trump is a proposed 3.5 percent excise tax on remittances sent abroad by non-US citizens that will have devastating consequences for the Philippines. If signed into law, the measure will significantly impact Filipino families and the national economy.

In 2024 alone, Filipinos abroad remitted a record $38.34 billion, according to the Bangko Sentral ng Pilipinas. Of that total, approximately $15.7 billion, or 41 percent, came from the United States, the Philippines’ single largest source of remittances. Should the tax be implemented, it could withhold an estimated $549.5 million, or roughly P30.88 billion, from families in the Philippines a year. For the Filipino family, this excise tax from the remittances represent tuition unpaid, medicines left unbought, and meals that may never be served.