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NewsWhore
06-11-2008, 01:40 PM
The Dominican Republic Airline Association (ALA) has made a strong appeal for the elimination of all taxes on aviation fuel. The request was made to the government and to the Dominican Civil Aviation Institute (IDAC). They are also calling for a revocation of the commission paid to travel agents on tickets sold, leaving up to the airlines to negotiate any fee. According to El Nuevo Diario, the requests are part of an effort by the association to reduce the effects of higher fuel prices on airline flights. The association submitted the proposals to the Civil Aviation Board and the IDAC. The document asked the two entities to revise and modify laws 112-00 and 495-06, and suggested that the direct tax on airline tickets should be rescinded and the 16% VAT tax on jet fuel eliminated. According to ALA, these measures would enhance the Dominican Republic as an attractive destination for international and local flights. These suggestions come at a time when the main airlines serving the country have announced major reductions in their flights this summer and more coming for September.
The airlines have the backing of the National Competitiveness Council, the Airport Department and the Dominican Civil Aviation Institute, which signed an agreement this week pledging to join efforts to confront the high costs of airline travel to the DR. The government institutions agreed to finance a study that would provide a diagnostic, analysis and recommendations on reforms to maintain conditions for future development and competitiveness of passenger and cargo transport to the country. Former Santo Domingo senator Jose Tomas Perez, director of the IDAC is in favor of eliminating the 16% tax on aviation fuel.

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