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Civil Aeronautics Board disallowed from collecting regulatory fees


MANILA, Philippines - The Philippines’ justice department disallowed the Civil Aeronautics Board (CAB) from imposing and collecting regulatory fees on airlines that have congressional franchises. In a letter submitted to the CAB, Justice Secretary Raul M. Gonzales said that taxes paid by airlines already “answer[s] for all other taxes, duties, royalties, registration, license and other fees and charges of any kind, nature or description, that any municipal, city, provincial or national authority or government agency may impose." The letter was issued after the CAB sought an opinion covering tax perks enjoyed by airlines with congressional franchises. Earlier, the aviation body asserted that airlines’ tax perks were limited to the importation of aviation fuel and equipment and not to administrative fees. However, the justice secretary said that the taxes paid by airlines already “covered administrative fees that may be collected by any government agency in the conduct of the airlines business." In granting franchises to airlines, it was the law’s intention to level the playing field for all airlines that have franchises. “By placing the franchise holders in equal footing, it gives them the opportunity to have free competition such that if a certain disadvantage, privilege or favor is given to a certain airline franchise holder, it must also be enjoyed by another franchise holder. This is necessary so as not to violate the ‘equal protection clause’ of the 1987 Constitution," said Gonzalez. - GMANews.TV
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