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Photo courtesy of Rep. Sandro Marcos
MANILA — The proposal to abolish the travel tax, first advanced in the House of Representatives by House Majority Leader Sandro Marcos, is gaining momentum in the Senate after Senator Francis Pangilinan filed a counterpart measure.
Pangilinan recently introduced Senate Bill No. 1843, which seeks to remove the travel tax, describing it as a financial burden that restricts the ability of Filipinos with limited means to travel abroad.
The filing came about a week after Marcos publicized House Bill No. 7443, which carries similar provisions in the lower chamber. Marcos earlier said Senate Majority Leader Juan Miguel Zubiri supports the initiative.
“By lowering the cost of international travel, we expect to stimulate passenger volume, increase spending on transport, accommodation, food, and services, and generate positive spillovers across the economy,” read the explanatory note of Pangilinan’s bill.
“Increased travel activity also strengthens people-to-people exchanges and supports the Philippines’ positioning as a competitive and accessible destination,” it added.
Under the current system, outbound passengers are charged P2,700 for first-class tickets and P1,620 for economy class. Pangilinan said these mandatory fees impose an additional cost that affects Filipinos’ right to travel, which is protected under Article III, Section 6 of the 1987 Constitution.
Instead of maintaining the levy, Pangilinan proposed that programs currently funded by travel tax collections be financed through the national budget.
Specifically, allocations would be coursed through the Department of Tourism for the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), through the Commission on Higher Education for the Higher Education Development Fund, and through the National Commission for Culture and the Arts for the National Endowment Fund for Culture and the Arts.
Marcos’ House bill contains similar funding adjustments.
If enacted, the proposals would repeal the travel tax imposed under Presidential Decree No. 1183, as amended, as well as Section 73 of Republic Act No. 9593, also known as the Tourism Act of 2009.
The travel tax abolition measure has also been included in the list of priority bills under the Legislative-Executive Development Advisory Council, signaling support within the administration’s legislative agenda.