MANILA: President of Clark International Airport Corp. (CIAC), Emidgio Tanjuatco, said that they are negotiating with the Department of Tourism (DOT) to give relief in travel tax to encourage the public to fly via Clark International Airport (CRK) instead of Ninoy Aquino International Airport (NAIA) in Manila.
“We are coordinating with the DOT about the possibility of imposing a moratorium on the imposition of travel tax here in CRK. If DOT agrees to the proposed moratorium, passengers will be encouraged to fly through Clark,” he said.
Travel tax covers Filipino citizens, permanent resident aliens, and non-resident aliens who have stayed in the country for more than a year. Prior to departure, they are required to pay the rate of R2,700 for first class passengers or R1,620 for economy passengers.
However, DOT representatives present during Monday’s consultative meeting with CRK stakeholders said the proposal should be elevated to the Office of the President, considering the financial and legal implications it involves.
For his part, Transportation Undersecretary Jose Perpetuo Lotilla said it is possible for President Benigno Aquino III to allow the travel tax waiver for CRK passengers like what former President Fidel Ramos did in 1994 to encourage tourism and economic activities in the BIMP-EAGA region.
Ramos issued Memorandum Order 237 in October 1, 1994, authorizing provisional exemption from payment of travel tax to all passengers by sea originating from all international ports in Mindanao to any destination within the BIMP-EAGA (Brunei, Darrusalam, Indonesia, Malaysia, Philippines-East Asian Growth Area) for a period of 60 days.
“If that was possible during the time of President Ramos, then we should present to the President Aquino. But it is ultimately up to the President because of the moratorium’s financial impact,” Lotilla explained.
CRK is designed to accommodate 4 million passengers annually. However, the Central Luzon hub only served 1.2 million passengers in 2013, which further dropped to 877,757 passengers in 2014.
Airline companies currently operating at CRK are Asiana Airlines, Dragon Air, Jin Air, Qatar Airways, Cebu Pacific, Tiger Air Philippines, Tiger Air, and Air Asia Berhad. Air Asia Zest and Emirates have pulled out of CRK last year.
Nevertheless, the government is investing to expand the capacity and groom CRK as an alternative to the heavily congested NAIA under a dual-airport system. The Aquino Administration is pushing for a P12-billion project to construct a low cost carrier terminal at CRK. Approval of the first phase of the project is targeted by May.
