A decades-old financial burden on Filipino travelers may soon be lifted. A key House of Representatives committee has moved to abolish the travel tax, a levy initially intended to conserve foreign exchange and bolster domestic tourism during a different era.
The tax, first introduced in 1956 and later amended in 1977, currently collects P1,620 from economy class passengers and P2,700 from those traveling in first class. For years, it’s been a mandatory fee for anyone leaving the Philippines, adding to the overall cost of international travel.
The push to eliminate the tax gained significant momentum after being designated a priority bill by President Marcos Jr. Lawmakers argue the levy has outlived its original purpose and now actively discourages Filipinos from traveling abroad.
Marikina Representative Miro Quimbo, chair of the House Ways and Means Committee, emphasized the need for a fairer tax system. He stated that the current system risks becoming “regressive,” and that taxation should be “progressive” – meaning it should consider a person’s ability to pay.
The approved bill outlines a plan for immediate refunds of previously paid travel taxes once the abolition takes effect. Passengers who have already paid will be entitled to receive their money back for flights scheduled after the new law is implemented.
Currently, half of the collected travel tax revenue goes to the Tourism Infrastructure and Enterprise Zone Authority. Forty percent is allocated to the Commission on Higher Education for tourism-related education, while the remaining ten percent supports the National Commission for Culture and the Arts.
A major concern raised by government agencies reliant on this funding has been addressed in the proposed legislation. The bill suggests that affected programs will be funded through the national budget, ensuring their continuation without relying on unpredictable travel patterns.
Representative Quimbo powerfully argued that vital programs shouldn’t be vulnerable to fluctuations in travel numbers. He believes these initiatives are too important to be dependent on a tax tied to how many people choose to travel.
The bill now moves to the House Appropriations Committee for review of its financial implications. If approved there, it will be debated on the House floor, bringing the potential end of the travel tax one step closer to reality for Filipino travelers.
