Bill seeking to abolish travel tax pushed in House
House Majority Leader Sandro Marcos has filed a bill seeking to abolish the travel tax.
Similar to a measure filed in the Senate, House Bill No. 7443 aims to immediately get rid of the travel tax to "uphold the constitutional right to travel and to stimulate economic growth."
In his explanatory note, the presidential son called the travel tax a "deterrent to travel."
"Taxation on personal travel and online bookings suppresses demand, dampens tourism growth, and discourage[s] mobility. The Philippines has consequently become a regional outlier since most ASEAN member states have already abolished similar levies to promote tourism and regional integration," he wrote.
Marcos also pointed to the ASEAN Tourism Agreement of 2002, which mandates member states to eliminate travel-related levies on ASEAN nationals.
"Abolishing tax will reduce travel costs and could also encourage more frequent domestic and international travel by Filipinos," Marcos continued, adding that removing the tax would also improve the country's attractiveness as a travel and business destination.
Under the proposal, programs previously funded by the travel tax—the Tourism Infrastructure and Enterprise Zone Authority, Commission on Higher Education, and National Commission for the Culture and the Arts—will seek funding from the annual General Appropriations Act.
Currently, 50% of collections go to TIEZA, 40% go to CHED, and 10% go to the NCCA.
If the bill is enacted, TIEZA will also refund any previously paid travel taxes to passengers with flights scheduled on or after the date of effectivity.
Sen. Erwin Tulfo filed a similar measure in the Senate.
Most airlines already include the travel tax in the total ticket price when you book your flight online or through a travel agent. If it’s not included in your ticket, you can pay online before your flight via TIEZA.
You can also settle it on the day of your flight at a TIEZA Travel Tax counter available at airports.