Friday, March 8, 2013

Foreign Airlines To Add Flights in the Philippines After Tax Removal

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Posted on Friday, March 8, 2013

Foreign Airlines To Add Flights in the Philippines After Tax Removal
If you can recall way back March 2012, KLM has pulled out its flights in Manila due to the high taxes levied to them. KLM was supposedly the last direct link between Manila and European regions.

Good news! Finally, President Benigno C. Aquino III has signed into law the lifting of the common carriers' tax and the gross Philippine billing tax, which were impossed to foreign airlines.

In a statement by the President of the Philippine Travel Agencies Association (PTAA) John Paul Cabalza said, "Cathay Pacific, Delta Airlines, Etihad, KLM, Kuwait Airlines, Lufthansa/Swiss Airlines, Qatar Airlines, and Singapore Airlines are expected to expand operations to the Philippines this year."

He also added that "the travel industry has long waited for the scrapping of the Common Carriers Tax and Gross Philippine Billing Tax. The law aims to attract foreign carriers to operate more flights to and from the Philippines, helping boost tourist arrivals. This will definitely boost the Philippine tourism industry as unnecessary barriers to entry into the country have been removed."

Both taxes amounts to a total of 5.5% over gross receipts of carriers, a loss of revenue for the Philippine government but it can actually be recouped by tourism revenues.

At present, there are only six million seats avaialble on about 369 weekly flights to the Philippines. With the tax breaks given to the foreign airlines, there is still hope that the Philippines' Department of Tourism can actually reach its 5 Million visitor target this year.

11 Responses to “Foreign Airlines To Add Flights in the Philippines After Tax Removal”

Mezhal Ulao said...
March 8, 2013 at 1:18 PM

this is awesome news :D

Mary Anne Vinzon said...
March 8, 2013 at 4:40 PM

For this good news, there were many advantages. More visitors will be coming in our country which means more income too.

Chubskulit Rose said...
March 9, 2013 at 1:59 AM

That's a good move from the Phil. government, not only it will give the tourist the chance to visit the country but it would also help Filipinos from Europe to go home without so much layovers.

Anonymous said...
March 9, 2013 at 9:36 AM

Good news to travellers, that means more tourist will come visit our country

Prettymom said...
March 9, 2013 at 11:15 AM

this is a good news, I hope this help market the tourism in the country..

Mommy Liz said...
March 9, 2013 at 1:19 PM

That's good, more tourists more money being brought to the country.

Liza Barnett

Claire said...
March 9, 2013 at 5:14 PM

This is such a good news, it will really help boost our tourism industry and economy.

working mama said...
March 9, 2013 at 9:28 PM

great news for everyone! this only means that it's truly more fun in the Ph

Peachy Adarne said...
March 10, 2013 at 4:05 AM

This is such a good news. It might mean more tourist are headed towards the country.

Adin B said...
March 10, 2013 at 12:09 PM

Sounds like a great plan. It is not only good for the Philippine Tourism, but will also be beneficial for Filipinos who are abroad. That's one of the hassles in traveling is having to go through may layovers and that can get really old. It's nice to have something of a direct flight. THanks for sharing!

Kaye Figuracion said...
March 12, 2013 at 5:57 PM

This is good news for everyone most especially for our tourism industry.

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