The Board of Airlines Representatives is urging the Philippines to abolish, as soon as possible, the common carrier’s tax (CCT) on airlines flying out of the country, to benefit both the foreign trade and tourism sectors. In May this year, the Philippine House of Representatives approved a bill which sought to “rationalize” the taxes on international air carriers, which are levied on all revenues, passengers, cargoes and excess baggage leaving the Philippines.
For some time, airlines have lobbied for, at least, a cancellation of the 3% CCT to which they are subjected. That lobby has now intensified with the government being asked to exert pressure on the Senate, whose approval is necessary before the bill can be finally approved.
The House-approved bill provides that international air carriers doing business in the country would not be liable to pay the CCT. It also stipulates that they would be exempt from the 2.5% gross Philippine billings tax (GPBT), if reciprocal exemptions can be arranged with their relevant foreign jurisdictions.
