MANILA: National carrier Philippine Airlines (PAL) is lukewarm to a proposal of the Department of Finance (DOF) to raise excise tax on fuel, citing it could lead to a weak demand for travel.
PAL president and chief operating officer Jaime Bautista said higher excise tax on jet fuel would mean more costs for the airline.
DOF’s first package to amend the National International Revenue Code submitted to the House of Representatives, seeks to lower personal income tax brackets. To offset revenue losses, the first package proposes to raise excise taxes on oil and remove some value-added tax exemptions.
Airlines are seen to be affected by the first tax reform package as this includes increasing the excise tax on aviation turbo jet fuel to P10 from P3.67 per liter of volume capacity. Bautista said excise taxes paid to the government would increase if the proposal is approved.