Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 163)
The Homecoming Program for Overseas Filipinos, also known as the Balikbayan program, is a government initiative aimed at encouraging Overseas Filipinos and their families or descendants to visit the Philippines. It offers various incentives, including fare reductions and tax exemptions, to facilitate their homecoming.
The Balikbayan program was extended for another six months, effective from March 1, 1974, to August 31, 1974.
The Philippine Air Lines (PAL) is directed to offer fare reductions up to a minimum of 50% for round-trip travel for Overseas Filipinos from all overseas points served by PAL to Manila and return.
No, all incentives offered under the Letter of Instruction are applicable to all Balikbayan participants regardless of the carrier they take in coming to the Philippines.
PAL offers special fares to Overseas Filipino students and Overseas Filipino family groups participating in Balikbayan, and a 30% reduction in domestic air fares for Balikbayan participants.
The Philippine National Railways offers a 30% reduction in fares to Balikbayan participants.
Overseas Filipinos who have become permanent residents or naturalized citizens of foreign countries and who signify their desire to become permanent residents of the Philippines are exempted from the payment of customs duties and taxes on personal effects brought home, upon presentation of official approval of change of residence.
Qualified Overseas Filipinos are granted tax exemptions on purchases of locally-manufactured vehicles, household appliances, professional instruments, and other tools of trade, occupation, or employment, provided such purchases are made locally with United States currency.
The Philippine National Bank, through its overseas offices, offers credit incentives to Balikbayan participants to assist with transportation and other homecoming expenses.
Local governments, coordinated by the Department of Local Government and Community Development, are to encourage involvement by rewarding provinces, cities, municipalities, and barrios that invite the most Balikbayan participants, supporting schoolchildren in writing campaigns, and promoting local hospitality and town fiestas as focal points for the program.