In my cubicle: Exemptions on travel taxes for exporters

I’ve read through the website of the Office of the President of the Philippines about travel tax exemptions for exporters, which was signed into law last December 2006. Executive Order (EO) No. 589 exempts exporters joining international trade fairs, exhibitions, selling missions, among others, from paying the travel tax." Exporters will be able to earn savings from the supposed taxes paid during travel through this new law.

The travel tax exemptions cover the following:

• Participation in outbound or offshore business matching and selling missions organized or duly endorsed by the Bureau of Export Trade Promotion (BETP) of the Department of Trade and Industry (DTI);
• Attendance in international trade fairs and exhibitions organized or duly endorsed by the Center for International Trade Expositions and Missions (CITEM) of the DTI, the EDC, or the accredited umbrella organization of exporters;
• Participation as official members of the Philippine delegation to trade negotiations and international conferences duly endorsed by the Bureau of International Trade Relations (BITR) of the DTI;
• Participation of agents or office representatives of buyers in promotion and marketing activities of Philippine export products in the international market;* Attendance in seminars pertaining to technology, productivity, and competitiveness enhancement duly endorsed by DTI; and
• Participation in international conferences relevant to international tradeduly endorsed by the DTI.

Under EO 589, requests for travel tax exemption, which shall not exceed P20 million annually, must be endorsed by the Export Development Council (EDC) upon the recommendation of the BETP, CITEM, or the EDC-accredited umbrella organization of exporters.

This move is definitely a welcome help from the government especially on the export industry which is currently adjusting to the strengthening of the Philippine peso. Cebu City most especially is cheerful of this advantage where a lot of furniture exporters are located.