Rep. Marcos wants travel tax abolished
House Majority Leader and Ilocos Norte Rep. Sandro Marcos on Wednesday filed a bill seeking to abolish the travel tax, saying it has become an unnecessary burden on travelers and no longer serves its original purpose.
If enacted, House Bill No. 7443 would repeal the travel tax imposed under Presidential Decree No. 1183 and related provisions of the Tourism Act of 2009, ending the collection of fixed charges that currently reach P2,700 for first class passengers and P1,620 for economy class travelers.
“The travel tax was created in a very different economic context. Today, it has become an added cost that restricts mobility and weighs heavily on ordinary Filipinos who simply want to travel for work, family or opportunity,” Marcos said.
He also noted that these fees compound the rising costs of airport and terminal fees, all of which could have been “allocated to essential household needs or reinvested in the local economy.”
Effect on economy
“When travel becomes more expensive, fewer people move, fewer people spend and fewer opportunities circulate through the economy. Lowering the cost of travel allows Filipino families to allocate their money where it matters most,” Marcos explained.
The lawmaker said the Philippines has increasingly become an outlier in Southeast Asia, noting that many members of the Association of Southeast Asian Nations have already scrapped similar travel-related levies to boost tourism, trade and people-to-people exchanges.
Retaining the travel tax runs counter to regional efforts to ease movement within the bloc, he added.
Marcos emphasized, however, that abolishing the travel tax would not mean withdrawing government support for sectors that currently receive funding from the levy, including tourism, culture and education.
