EU firms seek PEZA clarity on tax perks for aviation projects


European businessmen in the country are asking the Philippine Economic Zone Authority (PEZA) for guidance particularly on tax incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law on potential investments in the aviation industry.

In a letter to PEZA Director General Tereso O. Panga, the European Chamber of Commerce of the Philippines (ECCP) has requested for a discussion in light of its preparation for the Aviation Summit to be held here in October this year.

In recognition of the role of PEZA, ECCP Executive Director Florian Gottein has called for a discussion on the “plans and priorities of the agency for 2024 with a special focus on investments in the aviation industry.”

Particularly, Gottein said “We would like to raise the concern that our members have about certain provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and their impact on aviation industry locators.”

As a founding member of the Joint Foreign Chambers, Gottein said that one of ECCP’s Advocacy Committees is aviation. The ECCP established committees that meet to discuss industry-level issues and actionable solutions, which are then elevated to the government through a series of advocacy tools.

“The ECCP has been a steadfast partner of the government and other stakeholders within the business sector, civil society, and academe to work towards the creation of a level playing field for both European and Filipino companies alike,” said Gottein.

During the 2023 Aviation Summit, the ECCP, together with the Asian Business Aviation Association (AsBAA) and the Department of Transportation (DOTr) provided a platform to share general updates and best practices on aviation and discuss industry-wide concerns.

The Summit identified the following 2023 priorities: ● Formulate a National Aerospace Plan ● Upgrade airport infrastructure ● CAAP amendments, the Philippine Airports Authority, and the Philippine Transportation Safety Board ● Montreal Protocol 2014 ratification ● CapeTownAgreement ratification ● Upgrade the Philippine aviation safety systems ● Provide sufficient regulatory attention to address issues affecting aviation safety operations ● Incorporate sustainability in a long-term strategy for the development of the Philippine aviation industry (with a special emphasis on sustainable aviation fuel)

Building on the gains of the 2023 installment, ECCP and AsBAA are once again joining forces in organizing the 2024 Aviation Summit that intends to draw deeper awareness on aviation's critical role in the Philippine economic progress and push for advocacies that promote growth, sustainability, efficiency, and safety within the sector.

ECCP positions cover cross-cutting issues and sector-specific position papers, listing key recommendations on actions needed to support market access for European businesses and enable long-term economic welfare for the Philippines, the letter added.