DoF: No objection to repeal of carrier's tax but...

DoF: No objection to repeal of carrier's tax but... | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features

Finance dept open to airline tax removal but wants Congress to gurantee new revenues


The latest on KLM's saga in the PH. The burden of a solution now lies with the PH Congress.

"The Department of Finance (DoF) said Friday it poses "no objection" to the proposed repeal of the common carrier's tax (CCT) as long as there is a countervailing revenue measure to recoup an estimated P1.6 billion in losses."

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"Our position is consistent with the recent World Bank report which states that CCT should be repealed to be consistent with international practice and not hinder growth of tourism sectors," [Finance Secretary Cesar V. Purisima] said in the statement.

"We acknowledge the role of tourism in generating investments, employment and reducing poverty in the country," Mr. Purisima added.

European Chamber of Commerce of the Philippines (ECCP) president Hubert d’Aboville welcomed the Finance department’s new stance, saying it would bode well for the economy.

"The math will show that each tourist that comes to the Philippines spends so much more locally than what the taxes would be. Further tourism will boost job creation in the province," he said in a text message.

The decision, however, should have come three months ago to prevent Air France-KLM’s pullout, Mr. d’Aboville added.

ECCP Executive Vice-President Henry J. Schumacher, for his part, urged Congress to fast-track pending excise tax reforms that have been identified by the Aquino administration as priority measures.