LOWER AIRLINE TAXES BEING DISCUSSED BY PHILIPPINE GOVERNMENT

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By TESTCustomwebLP TESTCustomwebLP January 24, 2011 15:42

LOWER AIRLINE TAXES BEING DISCUSSED BY PHILIPPINE GOVERNMENT

The Philippines government is studying the reduction of airline tax rates to make the country a cheaper destination and attract more foreign airlines to fly to the country, say local media. However, such perks will only be offered to airlines from countries that do the same for carriers from the Philippines.

Deputy Executive Director Porvenir Porciuncula of the Civil Aeronautics Board (CAB) said the regulator recently met with the Bureau of Internal Revenue (BIR) to discuss the taxes imposed on foreign airlines operating in the Philippines.

The government earns an estimated P3.2 billion by imposing a 3% common carriers tax on gross receipts and a gross Philippine billings tax of 2.5%. The taxes have made the country an unattractive market for foreign airlines, especially those from Europe, which operate longer flights and have higher ticket prices, in turn requiring them to pay more taxes.

The European Chamber of Commerce of the Philippines has called on the government to scrap the “onerous” taxes. By doing so, the group said more airlines from Europe would consider flying to the Philippines, which would support the government’s programs to increase tourist arrivals and spur investments.

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By TESTCustomwebLP TESTCustomwebLP January 24, 2011 15:42
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