DAVAO CITY -- President Aquino has signed a new law that will remove certain taxes now being imposed on international air carriers and shippers.

Republic Act No. 10374, which recognizes the principle of reciprocity as basis for the tax relief to foreign carriers, seeks to boost tourist arrival and facilitate lower and more affordable fares.

The international carriers will be exempted from paying the Common Carriers Tax imposed on passenger traffic. They will also be value added tax (VAT)-exempt for the transport of passengers.

The signing ceremony was held during a travel convention at the SMX Convention in Davao. Among the officials present were Senator Franklin Drilon, Speaker Feliciano Belmonte Jr, and Tourism Secretary Ramon Jimenez.