PAL to get P900-m tax refund

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Credit: MB PHOTO / KEVIN DELA CRUZ

MANILA — The Court of Tax Appeals (CTA) has instructed the Bureau of Internal Revenue (BIR) to refund the Philippine Airlines (PAL) almost P900 million in specific tax the latter paid for the importation of aviation fuel, according to the Manila Bulletin.

The court’s decision reversed its earlier resolution finding the airliner liable to pay the tax for importing the fuel product in 2003 and 2004.

In granting the airliner’s motion for reconsideration, the Third Division of the court said PAL has complied with the requirements of Section 13 of Presidential Decree (PD) 1590 to get back the advance tax payment.

The decree stipulated that PAL may be exempt from paying the tax on the importation of jet fuel if the product is not available locally at reasonable quantity and price.

“PAL was able to sufficiently show that the imported fuel was not locally available in reasonable quantity and price at the time of the importation,” the court said in its 23-page decision.

The court noted that cost per liter of both Petron and Pilipinas Shell was higher compared to imported.

The court added that both the Air Transportation Office and the Civil Aviation Authority of the Philippines had allowed PAL to bring in the aviation fuel.

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