A MEASURE seeking to provide tax exemptions to international air carriers is gaining support from  lawmakers.

The House of Representatives will finish its deliberation to pass it on third and final reading when session resumes in May.

Under the bill, international air carriers will be exempted from the Common Carriers Tax and Gross Philippine Billings Tax.

The bill aims at boosting tourism and enable to abide by its commitments to international tax treaties.

The removal of the CCT, which is three percent of the airline’s gross turnover, and GPBT, which is two percent of the gross turnover, is embodied in House Bill 6022.

During the public hearing, Tourism Undersecretary Daniel Corpuz said the tax exemption will enhance the tourism policy of the government and support the tourism industry which has a projected target of 4.2 million tourists for 2012.

“The DOT extends its support for the enactment of the bill for so long as it provides redress to the current problems being faced by foreign carriers which are integral parts of the tourism sector,” said Corpuz.

Corpus said the administration has identified various government policy changes and plans in support of the tourism sector to generate investments, foreign exchange receipts and employment.

He said the current tax regime hampers the international air transport connectivity which is the most critical infrastructure linking the Philippines to the gross tourism market.

House Bill 6022 “Rationalizing the Taxes on International Air Carriers operating in the Philippines” seeks to amend Sections 28 (A) (3) (a), 108 (B) (6) and 118 of the National Internal Revenue Code of 1997, as amended.

It provides exemption from the payment of two and a half percent tax on GPB imposed on international carriers whose respective countries of domicile/registry have exchanged diplomatic notes with the Philippines for purposes of availing the exemptions pursuant to the principle of reciprocity by amending /Section 28 of the NIRC of 1997.

It exempts international air carriers from the three percent CCT by amending Section 118 of NIRC and classifying transactions of the international carriers as subject to zero percent value added tax rate by amending Section 108 of the NIRC.    Jester Manalastas