Duty Free Philippines exempted from retail remittance fee

Nicole Mezzasalma

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President Arroyo has ruled that fees were redundant as the stores already pay a proportion of their profits to the Department of Tourism

Philippines president Gloria Macapagal-Arroyo has signed a decree exempting Duty Free Philippines (DFP) from paying the mandatory remittance fee demanded of retailers in the country, equivalent to 1.5% of net sales. The news will be welcomed by DFP, which has been hit hard by a “sin tax” applied on its liquor and tobacco sales in the past few years.

The president said that the remittance requirement, which was introduced in 1993, was redundant in DFP’s case as the state-controlled retailer is already required to remit net profits to the Department of Tourism.

Reports indicate that DFP expects annual growth of 5% in 2007 after opening two new stores at Davao International airport in June.