Taxes may force KLM's Manila exit
- Latest News
- Wednesday, 20 October 2010
The Philippines' government taxes the outbound passenger and cargo revenues of several foreign airlines whether or not the tickets were sold in the country, KLM's regional manager Cees Ursem said.
"We are reconsidering our operations to Manila. tax issues are hurting airlines dramatically," he added.
Under the country's National Internal Revenue Code, international air carriers pay a common carrier tax of three per cent of their gross receipts and a 2.5 per cent tax on all cargo and passenger revenues "originating from the Philippines in an uninterrupted flight, irrespective of the place of sale or issue of the ticket".
