Lawmaker: Gov’t to gain P22B from travel tax abolition
The government could generate as much as P22 billion in additional annual income if it abolishes travel tax, far exceeding the projected P7.5 billion in foregone revenues, a lawmaker said on Sunday.
“We will lose overall P7.5 billion annually if we remove it,” Marikina Rep. Miro Quimbo said as he pushed for the passage of House Bill No. 7443 or the proposed Travel Tax Abolition Act of 2026.
“But based on our computation, the additional amount that will be generated in terms of income tax—because they will be earning more—will reach P22 billion) … It really is a ‘no-brainer.’”
The bill aims to abolish the decades-old travel tax imposed under Presidential Decree No. 1183 and PD 1867 as amended by at least three other laws: Republic Act No. 9593 or the Tourism Act of 2009, RA 1478 and RA 6141.
Under RA 9593, travel tax proceeds collections are supposed to go to the Tourism Infrastructure and Enterprise Zone Authority, formerly the Philippine Tourism Authority (50 percent); Commission on Higher Education for tourism-related programs (40 percent); and 10 percent for the National Commission for Culture and the Arts.
Under PD 1867, the travel tax is imposed on all outbound citizens, permanent resident aliens and departing nonimmigrant aliens who have stayed in the Philippines for more than one year.
The tax amounts to P2,700 for first class passage and P1,620 for economy class passage, but reduced rates were also set under RA 1478 and RA 6141.
There are also reduced or waived rates for dependents of overseas Filipino workers, children ages 2 to 11 and infants under 2.
“If we remove the P1,620 from the plane fare, that means more people will be able to travel. So the earnings of our travel agencies and airline companies will increase. It’s a no-brainer,” Quimbo said, adding that lower fares could result in a 20 percent reduction in ticket costs for popular destinations.
The lawmaker also pointed out that the Philippines is now the only country in the Association of Southeast Asian Nations collecting a tax on outbound travel.
Quimbo stressed that while there may be initial losses, collections over the next 18 months would more than offset the revenue reduction.
The lawmaker said the House aims to pass the bill before the June break and may already be enforceable by the end of the year, which is peak travel season.
The abolition of the travel tax is among the 21 priority legislative measures approved by President Marcos amid growing public support for the abolition of the travel tax.
Senior rights advocate and lawyer Romulo Macalintal on Sunday expressed his support for the abolition and urged for smaller fees for senior citizens in a letter addressed to President Marcos.
“On behalf of the millions of Filipino senior citizens, I write to express our profound gratitude and full support for your administration’s initiative to prioritize the abolition of the travel tax, which will certainly benefit our sector,” Macalintal said.
Once passed into law, the travel tax abolition will be a “concrete expression of the nation’s gratitude” to senior citizens.
He also pushed for the approval of other measures that benefit senior citizens, such the integration of the 20 percent discount on expressway Radio Frequency Identification (RFID), retention of the 20 percent food discount even in promos and national uniformity on free parking, cinema access and coding exemptions.
For the expressway toll discounts, Macalintal explained that mobility is “essential for health and dignity,” particularly for medical appointments.
Macalintal proposed that the mandatory 20 percent discount be integrated with RFID accounts for all national expressways.
He also asked that the seniors be exempt from promotional rates in food establishments that prohibit the use of a senior discount.
“We seek a clear, national policy ensuring the 20 percent discount remains inviolable for food items, ensuring marketing tactics do not supersede statutory rights,” Macalintal said.
