Tuesday, August 29, 2006
Arroyo revives Eaga travel tax exemption
IN A move to fully support the growth initiatives in the East Asean Growth Area (Eaga), President Gloria Macapagal-Arroyo recently revived the granting of Eaga travel tax exemption running through September 2008.
The President last week signed Memorandum Order 223, which extends the period of exemption from payment of travel tax to all Eaga-bound passengers originating from international seaports in Mindanao and Palawan, as well as international airports in the Philippines, provided they originate from Mindanao or Palawan.
Eaga is a major sub-regional cooperation pursued since 1994 by the four contiguous countries of Brunei Darussalam, Indonesia, Malaysia and the Philippines, aiming to boost formalized trade and economic ties that have existed for centuries.
As the Philippines braces for greater participation in the sub-regional cooperation, the recent Eaga policy support by the President is seen as a strategic move, ahead of the forthcoming four-country discussions at the 3rd Eaga Leaders Summit in December.
According to the Mindanao Economic Development Council (Medco), the country's coordinating office for BIMP-Eaga, the recent Presidential directive is among the recommended Philippine initiatives to reinvigorate the sub-regional grouping.
The other proposed initiatives include strengthening transportation linkages by reviving suspended flights, supporting existing and proposed air and sea linkages as well as improving terminal facilities in Mindanao ports,
Medco said.
The exemption from payment of travel tax amounting to about P1,600 started in 1995 as a policy modification initiative of the government in support of BIMP-Eaga.
The exemption had undergone renewal of extensions during past administrations. The last extension expired in June 2004.
"This is certainly a welcome development for Mindanao and Palawan, which are actively involved in various BIMP-Eaga initiatives," said Secretary Jesus G. Dureza, presidential peace adviser and Philippine-Eaga Signing Minister.
"The President should be congratulated for this positive government action on the efforts to promote mobility of people, goods and services between Mindanao, Palawan and other Eaga countries," Dureza added.
Mindanao's current trade and tourism linkages to Eaga are being sustained by direct sea links between Zamboanga and Sandakan of Sabah, Malaysia as well as direct flights between Davao and Manado, Indonesia.
Efforts are currently being pursued to mount flights between Zamboanga and Sandakan, Sabah, Malaysia by local airline Asian Spirit and Filipino-Russian joint venture Mosphil Aero.
Mosphil Aero launched its domestic operations (Zambonga-Jolo) Tuesday and is set to mount a probing flight to Sandakan Wednesday.
Meanwhile, the extended travel tax exemption is also expected to sit well with the activities that are geared toward energizing the tourism industry within Eaga.
"The extension of travel tax exemption will certainly help strengthen our tourism promotion activities," said Undersecretary Oscar Palabyab of the Department of Tourism, and Philippine Head of the Eaga Cluster on Joint
Tourism.
For Bisaya stories from Davao. Click here. (August 29, 2006 issue)
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