AirAsia urges Finance dep’t to scrap departure tax

THE Finance department is considering the proposal of Malaysia-based AirAsia Berhad to lower or scrap the departure tax in small airports.

A Department of Finance (DoF) statement quoted AirAsia Group CEO Tony Fernandes as saying the lowering of airport or departure tax in small airports “will help in realizing the airline’s expansion plans in the Philippines.”

Mr. Fernandes broached the matter during a recent courtesy call with Finance Secretary Carlos G. Dominguez III.

Mr. Dominguez said he will look into Mr. Fernandes’ proposal, which is seen to cut travel costs as well as boost trade and tourism.

Airline passengers leaving the Philippines are levied a full travel tax of P1,620 for those riding on economy class while P2,700 for those on first class package, according to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA.)

Republic Act No. 9593 or the Tourism Act of 2009 states that 50% of proceeds gained from travel cost collections will be given to TIEZA while 40% is to be received by the Commission on Higher Education for tourism-related educational programs and courses, while the remaining 10% will be given to the National Commission for Culture and the Arts.

Mr. Dominguez said he is also considering the possibility that airports impose different leasing or selling rates on airlines’ use of the gates, depending on the landing time.

“I have asked the DoF representatives in the airports to tell them to consider this differential pricing, selling gates, rather than a fixed tax,” the Finance chief said.

The DoF statement also quoted Mr. Fernandes as saying the reduction of airport tax would boost its expansion plans in the country.

Mr. Fernandes has said the budget carrier is keen to add more routes from Davao to China, South Korea and Malaysia. At present, AirAsia has flights from Davao to Singapore.

“There’s a big population here. There’s a good business here. We met some farmers who wish to send their cargos directly to these places,” Mr. Fernandes was quoted saying in a statement. — JMDS