Solon urges House investigation of airline’s unclaimed terminal fees

Published April 10, 2018, 11:07 AM

by Patrick Garcia

By Charissa Luci-Atienza

The House Committee on Transportation has been asked to look into the tax liabilities of Cebu Air Inc., operating under the trade name Cebu Pacific Air, with respect to the collection of terminal fees.


Negros Oriental Rep. Arnolfo Teves Jr. called on his colleagues to investigate the Cebu Air Inc. ‘s collection of terminal fees regardless of whether the passenger is able to travel or not.

“While, there is not much concern, when passengers are able to travel, dilemma comes in case the passenger fails to take the flight, ” he said in filing House Resolution 1784.

He took note that the monies collected by Cebu Air Inc. include amounts such undefined web charges, pre-checked insurance options and terminal fees, given that online transactions have made booking tickets convenient..

“In previous committee hearings in Congress, the management of Cebu Air Inc. declared that unclaimed and unreturned terminal fees are held by them in trust for the passenger. This information deserves scrutiny as it has both tax-related and civil law-related implications,” Teves said.

He said the House panel, chaired by Catanduanes Rep. Cesar Sarmiento should look into the matter and come out with legislation as a necessary consequence.

He also called on the Bureau of Internal Revenue (BIR) to look into the Cebu Air Inc. ‘s books of accounts and determine the tax implications of terminal fee collection.

“There is a need for the BIR to inspect the books of accounts of Cebu Air Inc. to verify the matter, and to consequently determine the tax implications of unreturned or unclaimed terminal fees, ” Teves said.