Travel tax reduction or removal may not be addressed — CAB

THE Transportation department may not be able to address the request of the airline industry to remove or reduce the travel tax in a bid to recover from the impact of the coronavirus outbreak as it requires congressional action, an official of the Civil Aeronautics Board (CAB) said on Monday.

Carmelo L. Arcilla, CAB executive director, said in a press conference in Pasay City that the Manila International Airport Authority (MIAA), Civil Aviation Authority of the Philippines (CAAP) and CAB had met with local airlines about “10 days ago” to tackle the industry’s requests.

“Nag-present po ang airlines ng kanilang mga kahilingan sa gobyerno dahil nga sa kanilang nadadanasan ngayon na malaking kalugian dahil sa COVID-19 (coronavirus disease 2019),” he said.

(The airlines presented their requests to the government because of the big losses they are experiencing amid COVID-19.)

He said the industry is seeking the removal or reduction of certain fees, which include the landing fees and the P1,620 travel tax.

The airlines, he said, also want to expand their domestic services to compensate the decline in air traffic.

He said the requests were being considered but most of them might not be addressed by the Department of Transportation “family” such as the travel tax, which goes to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).

He added that portions of the collected amount go to different branches of the government, thus the discussions on the requests may be difficult and should be studied.

He said a law should be passed to remove or reduce the travel tax, which is provided under a statute.

He added the airline sector’s recommendations have been submitted to all agencies concerned.

Air Carriers Association of the Philippines has said it expects to issue about P3 billion worth of ticket refunds in the next two months after the Philippine travel ban on China, Hong Kong, Macau and Taiwan.

Rep. Marisol Aragones-Sampelo, who chairs the House tourism committee, has filed a bill that seeks to abolish the travel tax. The lawmaker is proposing the creation of a tourism development fund, which will be funded through “tourism fees.” The measure has been pending at the House of Representatives since November.

According to TIEZA’s website, travel tax rates for economy and business class flights are at P1,620 while first class flights are taxed P2,700.

The agency receives half of the total revenue collected from travel tax while the Commission on Higher Education receives 40%. The remaining 10% goes to the National Commission for Culture and Arts. —