The tax collection of the Bureau of Customs (BOC) is suffering from the peso’s appreciation against the US dollar.

Customs Commissioner Napoleon Morales said the BOC’s target revenue of P223 billion this year was based on the exchange rate of P48 to a dollar.

"We are trying our very best, but things get harder and harder every day for us at the bureau as the peso continues to grow stronger," he said.

"This aspect is very vital for the Customs because the first step in tax collection is converting the invoice value (in dollar) to peso.

"The realization of assumption of our target is very important. Right now, it’s already P41 to P42 to a dollar. Our collection will definitely be affected since we collect in dollars and remit to government in pesos."

Morales said the BoC’s poor tax collection can also be attributed to the "decline in value and volume of imports in the past months."

"The assumption of volume is also not being met," he said. "There

were more imports in this same period last year."

The Department of Finance said every P1 appreciation against the dollar would have an impact of P2.7 billion in the BoC’s monthly collection.

Filipina domestic workers in Hong Kong are losing 20 percent of their monthly salaries because of the dollar’s steady drop against the peso.

Connie Regalado, Migrante-International chairwoman, said from the average P23,000 to P25,000 monthly salary of a Filipina domestic helper, at least P4,600 is lost due to the weakening of the dollar.

"Before, a Pinay DH was remitting an average of P10,000 a month to her family in the Philippines," she told reporters. "Now because of the lower value of the dollar, their remittances are also affected."

The figures are based on a consultation with a group of domestic helpers during a visit to Hong Kong last Nov. 26, Regalado said.

Regalado said the situation of Filipino domestic helpers in Hong Kong must be given importance because their salaries are relatively higher than those received by their counterparts in the Middle East.

"The average of a DH in Hong Kong is around $400," she said.

"The average salary in the Middle East is only $200. So they (domestic helpers in countries other than Hong Kong) are definitely receiving much less now."

Regalado said while the salaries of domestic helpers in Canada are also considered high, they do not get much as the cost of living there is also high.

Most of the 122,000 Filipino domestic helpers in Hong Kong are experiencing a cut in pay, she added.

Regalado said the situation of Filipino domestic helpers in Hong Kong has becomes worse because of the "increasing cost of living" in that Chinese territory.

Of the 283,000 OFWs that left the country this year, 22.9 percent are domestic helpers, she added.

Regalado said if the figures were to include caregivers, whose jobs are similar to those of domestic helpers, the number could go up to as high as 40 percent.

With lower remittance, the families of OFWs back home are desperate to make both ends meet with the increase in the prices of commodities as a result of the oil price hike, Regalado said.

At Malacañang, officials said a strong peso is shielding the country from external shocks and generating savings.

Secretary to the Cabinet Ricardo Saludo said President Arroyo has been "addressing the (negative) impact of the strong peso" for the past months.

"As for the OFWs, we are working to lower remittance fees and providing OFWs with financial advice," he said.

Saludo said the Technical Education and Skills Development Authority has launched a P1-billion scholarship program for the retraining of displaced OFWs.

The government has also instituted assistance programs for provinces with many lower-income OFWs, he added.

Press Secretary Ignacio Bunye said the Bangko Sentral ng Pilipinas has come up with measures to temper the peso appreciation and ensure overall stability in the foreign exchange market.

The prepayment of some of the country’s foreign debt somehow slowed the strengthening of the peso while cutting down the country’s overseas obligations, he added.

Bunye said the Development Bank of the Philippines is coordinating with the trade and finance departments to conceptualize a hedge fund for exporters.

The BSP continues to promote competition in the remittance market while pushing for financial literacy programs for OFWs, he added.

Meanwhile, Sen. Manuel Roxas II has sought for an additional budget for government projects to improve the welfare of OFWs.

In a letter to Sen. Juan Ponce Enrile, Roxas proposed additional budget for the Department of Labor and Employment and the Department of Foreign Affairs as a response to the problems of OFWs.

"Our OFWs, who buoy the economy through their $16 billion in remittances every year, deserve improved government services and innovative programs for reintegration once their contracts expire," he said.

Roxas, Senate committee on trade and commerce chairman, said he agrees with the DOLE’s request for an additional P50 million to make operational the National Reintegration Center for OFWs.

"This center should bring together OFW families and teach them how to plan their futures and pave the way for the eventual return of their relatives abroad," he said.

Reintegration programs should not be directed solely at remittances, but on how to strengthen and maintain family values, Roxas said.

On the other hand, Sen. Loren Legarda supported Sunday the proposal for the government to fix a foreign currency exchange rate for OFWs.

"We want to hear all sides, more so since we will be inviting financial experts and regulatory officials to attend the hearings," she said.

Legarda, Senate economic affairs committee chairwoman, said the government must study the impact of the prevailing foreign exchange conditions on Filipinos and the economy.

About five million OFWs and exporters have been adversely affected by the strength of the peso as against the dollar, she said, quoting a recent survey.

[ABS-CBN Interactive]