Friday, March 8, 2013
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Posted on Friday, March 8, 2013
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.
This post was written by: Mark Ferdinand Tayag
Makoy is a Senior Software Engineer based in Singapore. He enjoys cooking, swimming, running and taking photos. Makoy started blogging way back 1998 during his College years. Aside from his personal blog, he maintains a music blog, an entertainment blog, making money online blog and a photo blog. A certified Filipino blogger that wants to dominate the blogosphere.
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