In this letter written by the Board of Airline Representatives (BAR) to Senator Ralph Recto, Chairman of the Senate Panel of the Oversight Committee on Comprehensive Tax Reform, and to Congressman Hermilando Mandanas, Chairman of the House Panel, the BAR outlines their basis for an appeal for a “change in interpretation of Section 236(H) of the NIRC in order to remove the Common Carriers’ Tax (CCT) burden, which will give immediate relief to the industry, for the benefit of tourism, trade and the goal of job creation in the Philippines.” The predominant issue that they raise in this document is that of the discriminatory tax regime where Philippine air carriers are not subject to the same tax regime in international routes where they operate and compete with foreign air carriers. They also argue that the CCT and the gross Philippine billings make the Philippines an expensive, thus, uncompetitive destination.
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