Tuesday, January 08, 2008 Exporters enjoy tax exemptions
THE Confederation of Philippine Exporters (Philexport)-Cebu is determined to double the figure of patrons who are availing themselves of the Travel Tax Exemption program of the government.
Philexport Cebu advocacy and information officer Jun Abines said the umbrella organization of Cebu exporters is targeting 500 and more exporters to avail themselves of the tax exemption by the end of the year.
According to its website, Philexport Cebu reported that Cebu-based exporters compose most of those who got travel tax exemptions last year, comprising about 33 percent of the national figure.
Of the more than 600 travel tax exemptions processed all over the country from May to December 2007, about 200 were from Cebu.
"We intend to more than double the number this year. We will be intensifying our campaign of the program to existing and new members of the organization," Abines told Sun.Star Cebu in a phone interview yesterday.
Philexport-Cebu has approximately 700 members.
The travel tax, which is at P1,620 per person, means a combined savings of close to P1 million for all 600 and more exporters who took advantage of the exemption program, Abines said.
Executive Order (EO) 589 or the Travel Tax Exemption was signed by President Arroyo last Dec. 8 to aid exporters in promoting Philippine products abroad through international trade fairs, business matching, selling missions, trade negotiations, international conferences and other trade missions.
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Exporters attending seminars and trainings abroad are also covered by EO 589.
To avail themselves of the tax exemption, exporters only need to send their application forms to any Philexport chapter with two copies of all supporting documents including filled out application form, letter of invitation, letter of response and photocopy of the passport.
The government has allotted a P20-million per year limit on travel tax exemptions to exporters to encourage them to travel more, and sell Philippine products abroad.
In Central Visayas, Phil-export-Cebu was authorized by the Export Development Council to accept and process travel tax exemption for the convenience of its members.
While Abines viewed the tax exemption to be a "welcome relief" to exporters, he personally believes the government must look at other measures to effectively address the ailing export industry. (MMM)
