ISS Offers Advice on Philippines' Passenger Charge

 

ISS GMT Manila has issued clarification in respect of a change to the procedure for the collection of the International Passenger Service Charge which was introduced earlier this month.

 

Following updated advice from the Manila authorities, ISS GMT can confirm that the tax of Philippine Peso 550 (US$12) applied on passengers departing the Philippines does not apply to “locally-recognized” marine and offshore workers. This means that for tickets purchased outside of the Philippines from February 1, 2015, where the tax must be included, it can be reclaimed on presentation of a certificate at the airport on departure. However, if the ticket is issued inside of the Philippines, the charge is automatically not included.

 

Tim Davey, President of ISS GMT, said, “This tax is in line with many other countries who are seeking to increase revenues through passenger duties. The exemption for marine and offshore crew is welcome, but the process for reclaiming tax on departure, where tickets are bought overseas, is cumbersome. This brings the threat of refunds going unclaimed. Companies who issue their airline tickets outside of the Philippines will need their travelers to queue up to reclaim the departure tax on their behalf, and this could create further administration procedures for companies.”

 

Davey added, “In order to avoid having to add the tax in the first place, overseas shipping companies and offshore companies and contractors who employ crew from the Philippines can partner with local providers such as ISS GMT. Where this is done, tickets for outgoing marine and offshore workers do not have to have the tax automatically added, removing the need for refunds and potential losses through individual travelers not reclaiming the money back on behalf of their company.”