When asked to comment on the new BIR regulation on gross Philippine billings on taxes paid by foreign airlines, AmCham-ICIP Senior Advisor John Forbes said, “The government move misses the point and perpetuates the unlevel playing field between Philippine and foreign carriers. This decision will not help tourism and seems likely to discourage new airline service into the country by taxing their passengers directly which other governments do not do. We are not aware of any stakeholder consultation that preceded the issuance of the regulation last Friday. We ask that the regulation not be implemented until such consultations can be held.”
Meanwhile, this was echoed by ECCP VP Henry Schumacher’s statement: “This does not solve the issue. Makes foreign airlines less competitive than local airlines. It still does not encourage more airlines to come to the Philippines to boost tourism. We are still pushing for the scrapping of the common carriers tax and gross Philippine billings.”
Comment here