Palace welcomes PAL’s P6 billion tax settlement

November 4, 2017

Malacañang welcomed the P6 billion settlement of Philippine Airlines (PAL) with the government, which is expected to fund the Duterte administration’s priority projects, particularly the rehabilitation of Marawi City.

“That is a very, very positive outcome," said Presidential Communications Secretary Martin Andanar on government radio Saturday.

On Friday, Philippine Airlines settled its P6 million unpaid air navigational charges to the government. The charges were incurred since the 1970s up to July 30, 2017, a statement by the Department of Transportation (DOTr), Civil Aviation Authority of the Philippines ( CAAP) and the Manila International Airport Authority ( MIAA) said.

The payment by PAL in two checks were made earlier than the December 2017 deadline, the statement added.

A check amounting  to P5,677,887,615 was turned over by PAL to CAAP Chief Accountant Raul Eusebio. Another check worth P258, 594, 230.33. net of taxes, was given by PAL to MIAA Assistant General Manager for Finance and Administration Arlene Britanico.

President Rodrigo Duterte had threatened to deprive PAL of access to Terminal 2 unless the flag carrier settle its arrears. DMS