Airlines told: Exempt Filipinos from taxes, fees

Dubai: Airlines, including those operating in the UAE and the rest of the Gulf, have been reminded not to collect aviation charges from travelling overseas Filipino workers.

The Philippines’ top labour official, Department of Labour and Employment Secretary Silvestre Bello III said on Monday that despite earlier requests, airlines continue to collect terminal fees and travel taxes from Filipino expatriates.

He also reiterated to the carriers and the Civil Aviation Authority of the Philippines (CAAP) to refund the travel taxes and terminal fees collected from expatriates in the last three years.

It is estimated that since 2015, some 500 million pesos (Dh34 million) worth of terminal taxes have been collected from overseas Filipino workers and have yet to be turned over to the Overseas Workers Welfare Administration (OWWA).

Last year, Bello III ordered several carriers including Emirates, Etihad, Qatar Airways, Cathay Pacific, Singapore Airlines, Gulf Air and Saudia Airlines, among many others, to stop incorporating the cost of travel tax and airport fees in their tickets issued to Filipinos working abroad.

“It has come to my attention that the travel tax and terminal fees are being included in the cost of the airline tickets issued to our OFWs,” said Bello in his previous letter to the carriers.

The exemptions could mean a saving of nearly Dh200 per passenger, or more than 5 per cent off the average price of a return ticket to UAE.

Dh200 savings

As of 2017, travel taxes cost 1,620 pesos (Dh118) per economy class passenger, and airport fees were pegged at 750 pesos (Dh55), pursuant to Philippine laws.

“I’m wondering why until now they continue to collect. In fact, a year ago already we’ve sent a letter that they should not collect,” Bello said this week.

“That is illegal exaction. They may be criminally liable, so we are writing them again to remind of the exemption of our OFWs,” Bello was quoted by the country’s news agency as saying.

A spokesperson from Emirates told Gulf News earlier that the UAE-based carrier would stop collecting the aviation fees from Filipino customers. The fee exemption is supposed to apply to expatriates with valid Overseas Employment Certificate (OEC).

“Emirates complies with all relevant legislation within the Philippines. Overseas Filipino Workers (OFWs) who book flights with Emirates, and hold a valid OEC are entitled to a Philippine travel tax and terminal fees exemption, which is processed at the time of ticketing or can be claimed at the airport prior to departure,” the spokesperson said.