The Joint Foreign Chambers of the Philippines (JFC) have requested that the Government cuts the excise tax on aviation fuel for international carriers, after a Supreme Court (SC) decision to cancel refunds had effectively imposed higher taxation. In the previous year, the Government removed the tax on Gross Philippine Billings, if reciprocated by other countries, and the 3 percent Common Carrier’s Tax (CCT) on all revenues, passengers, cargoes and excess baggage leaving the Philippines. The CCT, in particular, was said to have caused a total withdrawal of foreign airlines from providing direct flights to Manila, even though the Government has deemed tourism a priority in national development.
The JFC has pointed out that, despite the CCT cancellation, new taxes have now been effectively imposed as a result of the SC decision to refuse to allow Pilipinas Shell to claim a refund of excise taxes on fuel supplies to foreign carriers. It has been ruled that the exemption from excise tax payments on petroleum products under the Philippines tax code does not apply to manufacturers.
