IN addition to local vessel operators, the Philippine Coast Guard (PCG) is strongly against the proposed water usage tax of the Manila city government.

Manila vice mayor Francisco Moreno is proposing a P5,000 daily water usage tax for every domestic and international vessel that docks in Manila. A public hearing on the measure is set by month’s end.

In an interview at the sidelines of the Maritime Breakfast Forum, PCG-National Capital Region commander Commodore Luis Tuazon said the proposed ordinance will distort rate-setting carried out by the Philippine Ports Authority (PPA) and will only increase prices of basic goods as any new fee will just be passed on to consumers.

Creating chaos

“Hopefully it will not be approved by the city government otherwise it will really create chaos among stakeholders,” Tuazon said, adding that opposition from international shipping associations will be stronger.

“The PCG will submit its position paper on the water usage tax and we hope the city government of Manila reconsiders its plan,” he said.

Earlier, Senate president Juan Ponce Enrile hit the City Council of Manila for interfering with port operations, which he said was a domain of the PPA. Enrile said the private contractor of the Ports of Manila are under the control of the PPA, which regulates all port fees, including wharfage dues, arrastre, stevedoring, storage and other fees.

You May Also Like

Seoul court rules Hanjin Shipping as bankrupt

South Korea’s Hanjin Shipping Co. was formally declared bankrupt by a Seoul district court on February 17, signaling the end for what once was…

Marina ups age cap for vessels seeking VAT exemption

The Maritime Industry Authority (Marina) has raised the age limit of vessels that can apply for an endorsement from the Department of Finance (DOF)…

Hapag-Lloyd, UASC merger delayed, no impact on THE Alliance

German box carrier Hapag-Lloyd announced that its merger with United Arab Shipping Company (UASC) will be postponed by two months, but assured that the…

ICTSI upgrades BCT intermodal facility, set to open Congo terminal in mid-2016

International Container Terminal Services, Inc (ICTSI) subsidiary Baltic Container Terminal (BCT) has completed its railway terminal modernization project in the Gdynia, Poland facility last…