Travel agencies seek tax relief, stimulus package < back

By Irma Isip- April 13, 2020

TRAVEL agencies and tour operators are seeking for a two-year assistance ranging from tax relief to stimulus package as they reel from the effects of the new coronavirus disease 2019.

The Philippine Travel Agencies Association (PTAA) said in a statement it has written  Tourism Secretary Bernadette Romulo-Puyat seeking endorsement of their two requests: “survival recommendations” which will cover the remainder of the year and “recovery recommendations” which will run until December 2022.

“We are bleeding and we will continue to bleed for an undetermined length of time with all the uncertainties,” said PTAA president Ritchie Tuaño in the letter

According to Tuaño, immediately, the PTAA wants the government to defer corporate income tax payments for their members this year to April 2021.  They are also seeking corporate income tax and value added tax holiday this year for their members along with the withholding of taxes on salaries and professional fees.

The PTAA is also asking for 50 to 75 percent subsidies on the salaries of their members’ employees until the end of the year citing the model being used in Singapore.  At the same time, they want a waiver on both employees and employer’s contribution to the Social Security System, Home development Mutual Fund, and the Philippine Health Insurance Corp. without prejudice to the benefits of their employees.

The association is also seeking a waiver or significant discounting on office rentals of their members until the end of the year, up to 30 percent discount on utilities payments, the granting of soft loans at low interest payable over two years, and moratorium on outstanding bank loans until end of the year.

Over the next two years, the PTAA is requesting for a significant stimulus package from the government including the reinstatement of the standard travel agency commission of nine percent gross fare from airlines which, over the past few years, steadily became non-existent with the rapid use of business-to-consumer models among airlines.

The PTAA also wants the DOT and the Tourism Promotions Board to subsidize the staging of the Travel Tour Expo (TTE), its annual flagship project, while also asking the government agencies to encourage the participation of all regional and provincial tourism offices in the expo.

In line with the TTE, the association also wants the DOT together with the Department of Trade and Industry, Department of Finance (DOF), and Department of Transportation to encourage credit card companies to partner with the PTAA instead of coming out with competing events and promos.

The PTAA is also looking for the DOF to provide tax yield incentives to all DOT-accredited tourism enterprises including hotels, resorts, transportation companies, restaurants, travel agencies, and tour operators for the savings to be passed on to the public.

The PTAA  wants the DOT to start a nationwide caravan including familiarization trips using travel agencies to stimulate domestic tourism. It also wants the DOT to waive participation fees for travel agencies and tour operators attending international tourism events until end of 2021.

The PTAA currently has 525 members across all sectors of the tourism industry operating nationwide.

“Courtesy of Malaya Business Insight.”