Post by Evodesire on Jan 24, 2011 21:56:54 GMT 8
Before working too much in favor of foreign airlines, why can't this g*dd*mn government work in favor of our local airlines and local aviation by getting us out of cat 2 and the EU ban first???
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Gov’t eyes tax cuts for foreign airlines
Exec says reciprocity will still be priority
By Paolo Luis G. Montecillo
Philippine Daily Inquirer
First Posted 21:50:00 01/23/2011
MANILA, Philippines—The government is studying the reduction of airline tax rates to make the country a cheaper destination and attract more foreign airlines to fly to the country, thus resulting in increased competition in the country’s air travel market.
But as with other policies aimed at developing the industry, tax perks will only be given to airlines from countries that do the same for carriers from the Philippines.
Deputy Executive Director Porvenir Porciuncula of the Civil Aeronautics Board (CAB) said the regulator recently met with the Bureau of Internal Revenue (BIR) to discuss the taxes imposed on foreign airlines operating in the Philippines.
The government earns an estimated P3.2 billion by imposing a 3-percent common carriers tax on gross receipts and a gross Philippine billings tax of 2.5 percent.
The duties have made the country an unattractive market for foreign airlines, especially those from Europe, which operate longer flights and have higher ticket prices, in turn requiring them to pay more taxes.
The European Chamber of Commerce of the Philippines has called on the government to scrap the “onerous” taxes. By doing so, the group said more airlines from Europe would consider flying to the Philippines, which would support the government’s programs to increase tourist arrivals and spur investments.
“We’ve had meetings with the BIR and the Bureau of Customs. They seem willing to cut the taxes,” Porciuncula said.
“But it will have to be on a case-to-case basis because some countries also charge similar taxes on foreign airlines,” he said. “It will have to be reciprocal.”
Earlier, the CAB said it would also prioritize reciprocity in implementing the government’s planned “open skies” regime, which would make it easier for foreign airlines to gain rights to fly to the Philippines.
The CAB said this privilege would only be extended to airlines that come from countries that are just as open to Philippine carriers.
Today, Dutch flag carrier KLM is the only European carrier with direct flights to the Philippines. No local airline has flights to Europe. The route is currently dominated by Middle Eastern carriers, which are able to offer lower ticket prices because they are able to buy fuel at a discount.
There is also a standing ban on Philippine carriers from flying to Europe—a result of the government’s inability to enforce minimum international safety standards.
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Gov’t eyes tax cuts for foreign airlines
Exec says reciprocity will still be priority
By Paolo Luis G. Montecillo
Philippine Daily Inquirer
First Posted 21:50:00 01/23/2011
MANILA, Philippines—The government is studying the reduction of airline tax rates to make the country a cheaper destination and attract more foreign airlines to fly to the country, thus resulting in increased competition in the country’s air travel market.
But as with other policies aimed at developing the industry, tax perks will only be given to airlines from countries that do the same for carriers from the Philippines.
Deputy Executive Director Porvenir Porciuncula of the Civil Aeronautics Board (CAB) said the regulator recently met with the Bureau of Internal Revenue (BIR) to discuss the taxes imposed on foreign airlines operating in the Philippines.
The government earns an estimated P3.2 billion by imposing a 3-percent common carriers tax on gross receipts and a gross Philippine billings tax of 2.5 percent.
The duties have made the country an unattractive market for foreign airlines, especially those from Europe, which operate longer flights and have higher ticket prices, in turn requiring them to pay more taxes.
The European Chamber of Commerce of the Philippines has called on the government to scrap the “onerous” taxes. By doing so, the group said more airlines from Europe would consider flying to the Philippines, which would support the government’s programs to increase tourist arrivals and spur investments.
“We’ve had meetings with the BIR and the Bureau of Customs. They seem willing to cut the taxes,” Porciuncula said.
“But it will have to be on a case-to-case basis because some countries also charge similar taxes on foreign airlines,” he said. “It will have to be reciprocal.”
Earlier, the CAB said it would also prioritize reciprocity in implementing the government’s planned “open skies” regime, which would make it easier for foreign airlines to gain rights to fly to the Philippines.
The CAB said this privilege would only be extended to airlines that come from countries that are just as open to Philippine carriers.
Today, Dutch flag carrier KLM is the only European carrier with direct flights to the Philippines. No local airline has flights to Europe. The route is currently dominated by Middle Eastern carriers, which are able to offer lower ticket prices because they are able to buy fuel at a discount.
There is also a standing ban on Philippine carriers from flying to Europe—a result of the government’s inability to enforce minimum international safety standards.