June 03, 2012

Foreign carriers rejoice as House moves to remove airline taxes

MANILA, Philippines - Foreign carriers with connections to Manila welcomed the recent approval on third and final reading of House Bill No. 6022, which seeks to remove burdensome taxes that have been hampering the airlines’ profitability in the country.

In a press statement, Board of Airline Representatives (BAR) First Vice Chairman Steven Crowdey said: “This is indeed positive and exciting news to the international airline community that has been monitoring the progress in legislation. We thank the Aquino administration for supporting the approval of the bill in the Lower House.”

Pushed primarily by Iloilo City Rep. Jerry Treñas, HB 6022 entitled “Rationalizing the Taxes on International Air Carriers operating in the Philippines” aims to amend Sections 28 (A) (3) (a) , 108 (B) (6) and 118 of the National Internal Revenue Code of 1997, as amended.

The proposed legislation would remove the three-percent common carriers tax and the 2.5 percent tax on gross Philippine billings imposed on foreign carriers, based on reciprocity.BAR has long been pushing for the elimination of these taxes which its members say is the major reason behind the slow development in international air connectivity of the Philippines. (For the rest, pls. click InterAksyon.com. My piece was originally published on May 30, 2012.)

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