MANILA, Philippines – The Bureau of Internal Revenue (BIR) warned over the weekend that it will seek a reduction in its revenue collection goal if Congress will repeal any existing tax law.

Internal Revenue Commissioner Kim S. Jacinto-Henares, said in a telephone interview that the main tax agency will not object with the planned repeal of the carrier tax on international airlines if it aims to lure investors.

But Jacinto-Henares, likewise, appealed that a repeal of carrier tax should also come with a reduction in its programmed collection target.

President Aquino said last Friday that his government plans to discuss the repeal of the carrier tax on international airlines with legislators.

“Nobody has officially informed me about it, so I am not making any estimate till I am asked,” Jacinto-Henares said when asked on the potential foregone revenue due to the proposed repeal of the carrier tax law.

Currently, international air carriers and international shipping carriers doing business in the Philippines are subject to 3 percent tax on their gross receipts pursuant to Section 118 of the Tax Code.

The planned repeal of the carrier tax on international airlines came in the wake of Philippine Airlines’ flight attendants notice to government that they would go on strike at the end of October.

The Flight Attendants and Stewards Association of the Philippines (FASAP) filed a notice of strike with the Department of Labor and Employment on September 9.

The notice of strike was filed after FASAP failed to reach a compromise agreement with PAL's management during mediation talks at the National Conciliation and Mediation Board last August 9.

FASAP withdrew from the talks after PAL refused to change its policies on mandatory retirement age and on maternity and pregnancy leaves.