Philippines scraps common carriers tax

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Phil air transportPhilippine tourist arrivals are expected to balloon after President Benigno Aquino III signed a new law on March 7 exempting foreign air and shipping carriers from paying common carrier tax on passengers.

Representatives of the Philippine tourism industry have said that the law has been long awaited and the tax was an unnecessary barrier that has impeded growth in the country’s tourism sector.

At a ceremony held in Davao, the largest city of Mindanao, President Aquino said that the passage of the law will “bring in more traffic and facilitate connectivity.”

Once it takes effect, this law will exempt all international air and shipping carriers from paying the 3 per cent common carriers tax on receipts and income derived from transporting passengers,” Aquino said.

“The carriers are also exempted from paying on the gross revenue derived from the carriage of passengers, cargo or mail – provided that the same exemption is granted by the carrier’s home country to the Philippines,” Aquino added.

The Philippines is in the progress of establishing new routes, bringing in additional aircraft and reclaiming favourable status among international aviation boards.

“We are opening up more connections to Europe pending an upgrade from the European Aviation Safety Agency (EASA), which currently places us in category 2,” Department of Tourism Secretary Ramon Jimenez, Jr recently told Inside Investor.

“The EASA downgraded us about six years ago, but we are in the progress of regaining this status as well as others, such as that given by the US Federal Aviation Administration, which would allow Western-based airlines to come back to the Philippines,” Jimenez said, adding that the International Civil Aviation Association recently audited the Philippines and the Department of Tourism is now awaiting a favourable report.

According to Jimenez, domestic airlines based in the Philippines will be adding 33 new aircraft for international traffic in 2013, including Cebu Pacific, Philippine Airlines and Zest Airways.

He said that the Philippines also looks forward to look forward to opening routes to Australia, Brazil, Canada, France, Indonesia, Italy, Japan, Papua New Guinea, Russia and Taiwan in the years ahead.

 

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Reading Time: 2 minutes

Philippine tourist arrivals are expected to balloon after President Benigno Aquino III signed a new law on March 7 exempting foreign air and shipping carriers from paying common carrier tax on passengers.

Reading Time: 2 minutes

Phil air transportPhilippine tourist arrivals are expected to balloon after President Benigno Aquino III signed a new law on March 7 exempting foreign air and shipping carriers from paying common carrier tax on passengers.

Representatives of the Philippine tourism industry have said that the law has been long awaited and the tax was an unnecessary barrier that has impeded growth in the country’s tourism sector.

At a ceremony held in Davao, the largest city of Mindanao, President Aquino said that the passage of the law will “bring in more traffic and facilitate connectivity.”

Once it takes effect, this law will exempt all international air and shipping carriers from paying the 3 per cent common carriers tax on receipts and income derived from transporting passengers,” Aquino said.

“The carriers are also exempted from paying on the gross revenue derived from the carriage of passengers, cargo or mail – provided that the same exemption is granted by the carrier’s home country to the Philippines,” Aquino added.

The Philippines is in the progress of establishing new routes, bringing in additional aircraft and reclaiming favourable status among international aviation boards.

“We are opening up more connections to Europe pending an upgrade from the European Aviation Safety Agency (EASA), which currently places us in category 2,” Department of Tourism Secretary Ramon Jimenez, Jr recently told Inside Investor.

“The EASA downgraded us about six years ago, but we are in the progress of regaining this status as well as others, such as that given by the US Federal Aviation Administration, which would allow Western-based airlines to come back to the Philippines,” Jimenez said, adding that the International Civil Aviation Association recently audited the Philippines and the Department of Tourism is now awaiting a favourable report.

According to Jimenez, domestic airlines based in the Philippines will be adding 33 new aircraft for international traffic in 2013, including Cebu Pacific, Philippine Airlines and Zest Airways.

He said that the Philippines also looks forward to look forward to opening routes to Australia, Brazil, Canada, France, Indonesia, Italy, Japan, Papua New Guinea, Russia and Taiwan in the years ahead.

 

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