Wednesday, February 28, 2018

Paying Tax on a Tax in the Philippines

Receipt for the 750 Philippine Peso Departure Tax paid at the Cebu, Philippines, airport on February 24, 2018

This is a tad funny and ironic when you think about it Most countries impose a “departure tax” on travelers leaving the country. It’s simply another way for countries to legally generate funds without having to indicate how the funds will be used or, in the case of the Philippines, which politician’s pocket the funds will land.

Most countries, including the United States, include the departure tax in your ticket price but not so the Philippines. There after checking in for your international flight you go to a desk and pay a 750 Peso (about $15 US) departure tax

This image shows that the cost breakdown on the 750 Philippine Pesos includes about 63 pesos for VAT or “value added tax”. Thus in the Philippines, travelers not only pay a departure tax but we also pay a tax on that tax! 

Maybe tRump should consider that scam to pay for his ridiculous wall

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