Solon wants foreign airlines’ tax scrapped

MANILA, Philippines—A lawmaker from Iloilo City’s lone district is urging the government to exempt international air carriers from paying air carriers tax to bring in more tourists and encourage investments in the country.

Rep. Jerry Treñas is seeking a review of the air carriers tax and has filed House Bill No. 4444 which will scrap what he described as a ‘‘grossly onerous tax regime.’’

In a press statement, he said international air transport inter-connectivity is the most critical infrastructure linking the Philippines to the global export markets of tourism and international business. He added that expected revenue loss resulting from the scrapping of the air carriers tax would be offset by the ‘‘huge income to be brought about by the outpour of business investments from other countries.’’

“The bill aims to advance Philippine tourism, trade, employment, economic integration with the rest of the world eliminating the negative impact the common carriers tax and gross Philippine billings on our inter-connectivity and competitiveness as an international investment destination,” he said.

He said airport transport inter-connectivity is the network of some 8.2 milion overseas Filipino workers and Filipino migrants, adding airline industry provides a seamless travel connection.

“Our neighboring Asian countries do not tax foreign airlines,” he added, citing even China and Japan have relaxed their tax policy to attract more foreign carriers.