Title
Formed TWG to Study Airport Passenger Charge Integration
Law
Memorandum Order No. 84
Decision Date
Aug 3, 2015
The Philippine government establishes a Technical Working Group to study the integration of the International Passenger Service Charge into airline ticket costs and develop IT-based solutions to identify exempt passengers.
A

Issues Concerning Exempt Passengers

  • Legal exemption of certain passengers from paying terminal and airport fees.
  • Concerns about inconvenience and financial burden if IPSC is integrated in ticket price with subsequent refund processes.

Legal Authority and Governance

  • MIAA empowered by EO No. 903 (1983) to regulate airport operations and services.
  • The President’s constitutional power to control executive departments and enforce laws.
  • EO No. 292 (Administrative Code) empowers the Executive Secretary to act on behalf of the President in certain administrative matters.

Creation of the Technical Working Group (TWG)

  • Establishment of a TWG to study the feasibility and implications of integrating IPSC in airline ticket prices at the point of sale.
  • Tasked to find immediate IT solutions to identify IPSC-exempt passengers to prevent unnecessary charges.

Composition of the TWG

  • Chairperson: Office of the Executive Secretary.
  • Members include representatives from: Department of Transportation and Communication; Department of Labor and Employment (Philippine Overseas Employment Administration); Department of Tourism; Department of Foreign Affairs; Manila International Airport Authority (MIAA); and two private sector representatives.
  • Heads of agencies designate representatives; Executive Secretary appoints private sector representatives.

Functions and Responsibilities of the TWG

  • Study and review the integration of IPSC into ticket costs.
  • Develop IT-based solutions to identify exempt passengers at ticket sale.
  • Coordinate with government, private, and non-governmental sectors.
  • Engage consultants, advisers, and resource persons as needed.
  • Perform additional functions as directed by the President.

Funding Provisions

  • Member agencies authorized to use current appropriations to implement the Order.
  • Compliance with existing budgetary, accounting, and auditing rules.

Reporting Requirements

  • TWG mandated to submit report and recommendations to the President via the Executive Secretary within 60 days from effectivity.

Miscellaneous Provisions

  • Separability Clause: Invalidity of any provision does not affect the others.
  • Repeal Clause: Conflicting orders, proclamations, rules, and regulations are repealed or modified.
  • Effectivity: Immediate upon publication.

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