Passenger, cargo transporters exempt from local business tax 47 SHARES Share it! Share TweetBy Jun RamirezThe Court of Tax Appeals (CTA) has ruled that gross income of cargo forwarders is exempt from business tax imposed by provincial, city and municipal governments. In a 16-page decision, the court said Section 5 of the Local Government Code (LGC) exempts transport operators of both passengers and cargoes from paying local business tax on their gross earnings. It said subjecting them to local tax was tantamount to double taxation as their gross receipts were already covered by the three percent common carriers tax under the Internal Revenue Code. The court also stated that it was also erroneous for the treasurer’s office to include reimbursement payment by the clients of Kuene to its gross income.

Source: Manila Bulletin November 25, 2018 07:52 UTC