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Cebu Pacific collects 106.92 worth of Tax for 176-peso Base Fare?

Cebu Pacific collects 106.92 worth of Tax for 176-peso Base Fare?

I always keep an eye on airline fare promos for me to plan my future trips. Cebu Pacific, being known for their budget fares, is the top airline of choice for seat sales. I would like to seriously add travel as one of my blogging niche so as much as possible, I could schedule at least one travel in a month. So when I saw the 88-peso fare promo of Cebu Pacific early this morning, I immediately booked a trip to Tuguegarao.

cebu pacific 88-peso promo

Cebu Pacific 88-peso promo

After choosing my flights, I was lead  to a new window that collects passenger information and posted beside it is the total ticket price. Seeing a sum of PhP1,557.92 was really shocking provided that the base fare is just PhP88.00 (I was aware in the first place that a 20-kg baggage fee was still included for each flight). When I checked the price details, I was puzzled on how the airline computed its Base Fare Value Added Tax. They charge PhP106.92 VAT for the total of PhP176.00 base fare. PhP106.92 is twelve percent of PhP891.00 so i have no idea how they manipulated the taxation fee computation.

cebu  pacific base fare vat charge

Cebu Pacific charges 106.92 VAT for a 176-peso fare

I fully understand that they collect 350-peso fuel surcharge, 15-peso aviation security fee, and 12% VAT for baggage fee. However, the minute “Total Non-Flight Service Fee” still needs an explanation.

cebu pacific non-flight service fee tax

Total Non-Flight Service Fee Tax?

I have no other avenue to seek for a clarification so I have to write this observation hoping that this will reach to the knowledge of the airline authorities for them to provide some sort of explanation.

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  • haggis

    the non-flight service fee tax is the VAT for the WEB Admin Fee. Basically all the budget carriers are taking on what tiger airways did and add a handling fee for using the web. they are charging the customer for not employing staff and making you wait hours for a phone connection. this is a great model and is almost a fee for not having a fee.

    whoever cam up with this kind of structure is a genius in digging as much out of the customer as possible.

  • jiggs

    base fare value added tax = (base fare + fuel surcharge + aviation fee) x 12%
    base fare value added tax = (88 + 88 + 350 + 350 + 15) x 12% = 106.92
    i have no idea about the other 1

    • iAn

      I see! they integrate fuel surcharge tax and aviation fee tax in the base fare tax…clear now! Thanks!