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NR # 2690
REF. NO.
NR # 2690
REF. NO.
The projected target for this year in terms of foreign arrivals is 4.2 million which is the conservative target. The optimistic one is 4.5 million which will require additional air services and air seats in order to help us achieve our projection, said Corpuz. Marciano Ragaza, a trustee of the Philippine Travel Agencies Association, said the entry of foreign airlines to the country in light of the removal of onerous taxes will generate more economic activity not only in terms of tourism but by trade and industry like export, among others. It will boost both inbound and outbound travel which is again in terms of reciprocity, and will generate a lot of income which will also give more income taxes to the government because there will be more people employed in the airports, hotels and other tourism-related industries from our sector, not to mention the trade and industry. So we fully support the removal of the CCT and GPB in this light, said Ragaza. Steven Crowdey, vice chairman of the Board of Airline Representatives (BAR), said the passage of the proposal will definitely improve their connectivity to the Philippines and promote trade and tourism. Crowdey said in a hearing conducted by the Senate on a similar proposal embodied in Senate Bill 3065, it was very clear to them that there was general agreement between the Senate Committee on Ways and Means, the DOT and DOF that the CCT should be removed while there was debate on the GPB. We provided a draft amendment that the GPB could be subject to reciprocity. This could be done through exchange of diplomatic notes, Crowdey said. House Bill 6022 titled Rationalizing the Taxes on International Air Carriers operating in the Philippines seeks to amend Sections 28 (A) (3) (a) , 108 (B) (6) and 118 of the National Internal Revenue Code of 1997, as amended. It provides exemption from the payment of two and a half percent tax on GPB imposed on international carriers operating in the Philippines whose respective countries of domicile/registry have exchanged diplomatic notes with the Philippines for purposes of availing the exemptions pursuant to the principle of reciprocity by amending Section 28 of the NIRC of 1997. Likewise, it exempts international air carriers from the three percent CCT by amending Section 118 of NIRC and classifying transactions of the international carriers as subject to zero percent value added tax rate by amending Section 108 of the NIRC. (30)
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