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| Overseas travel may soon become more affordable to most Filipinos with the tax scrapping |
The travel tax long imposed on Filipinos traveling abroad appears to be on its way out, after both houses of Congress, as well as President Ferdinand R. Marcos, Jr., have indicated a willingness to approve a bill proposing its abolition.
The full travel tax amounts to Php1,620 for those
traveling economy and Php2,700 for those on business class. It is reduced by
half for children aged 2-12; and fixed at between Php300 and Php400 for
dependents of overseas Filipino worker.
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The OFWs themselves, Filipino permanent residents of
another country, and certain categories of travelers, are exempted from paying
the tax.
In the latest indication that the travel tax may
soon be a thing of the past, Marikina City Rep. Miro Quimbo said the House of
Rerpresentatives is aiming to get it passed before the June break in its
sessions.
Quimbo called the abolition a “no-brainer”, saying
the government will earn far more from a potential boost in tourism and travel
among Filipinos, than what it stands to lose in unrealized income from the tax.
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In his estimates, the government could generate as
much as Php22 billion from additional tax collections from travel agents and
companies, which is a lot more than the projected loss of Php7.5 billion.
Just five days earlier, President Marcos included
the bill among 21 priority measures of the government.
Presidential spokesperson Claire Castro said the
President supported the bill as he wanted to ease the financial burden on
Filipino travelers and boost tourism earnings
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She also assured the public that the various sectors
funded from the travel tax will get their allocation directly from the national
budget.
According to law, 50% of the earnings from the
travel levy goes to tourism infrastructure projects, 40 percent to higher
education and 10 percent to promoting culture and heritage.
House Bill No 7443 titled “Travel Tax Abolition Act
of 2026” was filed by Ilocos Representative and presidential son Sandro Marcos,
and seeks to repeal Presidential Decree No 1183 (issued by his grandfather, the
late Philippine President and dictator Ferdinand E. Marcos) and Sec 73 of
Republic Act No 9593, also known as “Tourism Act of 2009.”
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If passed, the law shall prohibit any government
agency or private entity from collecting travel tax upon its effectivity, as
well as a refund for travelers whose travel date is scheduled on or after such
date.
A counterpart measure was filed at the Senate by
Senator Erwin Tulfo, who cited as reason the Philippines’ failure to abide by
its commitment to the ASEAN Tourism Agreement, which mandates the removal of
travel levies and taxes on nationals of ASEAN member states.
The Philippines was one of the signatories of the
agreement which was forged in 2009.
A separate bill was filed earlier by Senator Raffy
Tulfo, which called for the scrapping of travel tax for economy class passengers,
but not for those traveling on business or first class, saying this makes the
law equitable.
Senator Joel Villanueva also expressed public
support for the move, saying the tax was imposed at a time when travel was a
luxury that only a few Filipinos could afford.
Now that overseas travel has become popular and affordable to many, the tax only serves to impose an undue burden on them, he said.
