MANILA — The House Committee on Tourism has approved a bill seeking to abolish the Philippine travel tax, provided the measure includes a clear and sustainable funding mechanism for government programs that currently rely on the levy.
The panel, chaired by Eleandro Jesus Madrona, approved six proposals aimed at repealing the travel tax, which currently charges ₱2,700 for first-class passengers and ₱1,620 for economy travelers. House Majority Leader Sandro Marcos is among the authors of the measure.
Madrona directed the Committee Secretariat to prepare the committee report so it can be referred to the House Committees on Ways and Means and Appropriations to address the funding provision.
“Travel tax collections amount to roughly ₱8 billion annually and dropped to zero during the pandemic. In short, the revenue stream is volatile. And if we continue expanding exemptions, for example, exempting all economy passengers, practically nothing will be left to collect,” Madrona said. He added, “It may be better to establish a new funding scheme rather than continue relying on the travel tax.”
House Committee on Appropriations chairperson Mikaela Angela Suansing assured stakeholders that funding protections would be promptly addressed. “Given the criticality of the funds, we will work together to ensure those funds remain available. We hear you, and we understand the current structure,” Suansing said, adding that the committee would craft a mechanism responsive to the needs of different government agencies.
Currently, proceeds from the travel tax go to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and the National Commission for Culture and the Arts (NCCA).
TIEZA Chief Operating Officer Mark Lapid told lawmakers that approximately 96% of travel tax-paying passengers are economy class travelers, and around 90% of TIEZA’s operating budget comes from travel tax revenues. He also noted that 300 of TIEZA’s 1,025 employees could be affected if the tax is abolished without a replacement funding mechanism.
CHED Chairperson Shirley Agrupis said the commission does not oppose the abolition of the travel tax but appealed for continued funding for the Higher Education Development Fund (HEDF), which currently receives 85.6% of its funding from travel tax collections. “If the travel tax is repealed without a replacement revenue source, CHED’s HEDF will lose 85.6% of its funding. That is a structural loss directly affecting scholarships, research, and institutional upgrading,” Agrupis said.
The NCCA, which receives 10% of collections averaging ₱600 million to ₱700 million annually, also expressed conditional support, citing the need to sustain grants, heritage conservation programs, and cultural institutions nationwide.
Scrapping the travel tax has been identified as a priority by the Legislative-Executive Development Advisory Council (LEDAC). Miro Quimbo, chair of the House Ways and Means panel, said abolishing the tax could generate as much as ₱22 billion in additional annual government income, noting the government stands to earn more once the levy is scrapped.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
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- Venus L Peñaflor
- Venus L Peñaflor
