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Oct 8, 2017 @ 15:15

Air Asia wants govt to stop collecting travel tax, terminal fees


Philippines Air Asia has asked the government to stop charging travel tax and terminal fees in some provincial airports to attract more Filipinos to travel abroad.

The airline’s president Capt. Dexter Commendador wants government to stop the colection of travel tax of P1,620 and terminal fees worth P500 for five years in Davao, Bohol, Puerto Princesa and Clark.

“We have a study that says if you take away the travel tax and the airport fee for five years, the government will lose roughly P4 billion, but you will gain P299 billion in terms of tourism revenues,” Commendador said.

A travel tax is a levy imposed by the government on individuals who are leaving the country irrespective of the place where the air ticket is issued and the form or place of payment, as provided for by Presidential Decree 1183, as amended.

Half of the proceeds from travel tax collections shall accrue to the TIEZA, 40 percent shall accrue to the Commission on Higher Education (CHED) for tourism-related educational programs and courses, and 10 percent goes to the National Commission for Culture and Arts.

Air Asia operates a fleet of 17 aircraft with domestic and international flights out of hubs in Manila, Cebu and Kalibo.

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