Manila: House Majority Leader Ferdinand Alexander 'Sandro' Marcos of Ilocos Norte is advocating for the immediate abolition of the travel tax, arguing that it no longer serves its original purpose and now hinders the country's economic recovery, mobility, and regional competitiveness.
According to Philippines News Agency, House Bill (HB) No. 7443 aims to eliminate the travel tax, addressing the daily financial strain faced by Filipino travelers. Marcos stated in a news release that the travel tax was established in a different economic era and has become an extra cost that limits mobility for Filipinos traveling for work, family, or opportunities.
The proposed bill seeks to repeal the travel tax imposed under Presidential Decree (PD) No. 1183 and related provisions of the Tourism Act of 2009. Currently, the travel tax is set at PHP2,700 for first-class passengers and PHP1,620 for economy class travelers. Marcos highlighted that these charges accumulate quickly for families, diverting funds that could be used for essential needs or local economic activities.
He emphasized that higher travel costs lead to reduced movement, spending, and economic opportunities. By lowering travel expenses, Filipino families could allocate their finances towards more critical needs. Marcos also noted that the Philippines stands out in the region, as many Association of Southeast Asian Nations (ASEAN) member states have already removed similar travel taxes to boost tourism and trade.
Marcos clarified that abolishing the travel tax does not equate to withdrawing support for tourism, culture, or education, which currently benefit from tax collections. Instead, funding for agencies like the Tourism Infrastructure and Enterprise Zone Authority, the Commission on Higher Education, and the National Commission for Culture and the Arts would be shifted to the General Appropriations Act.
He advocated for transparent budgeting of public programs rather than imposing charges that disproportionately affect travelers. This approach would ensure continued funding while removing an unnecessary burden on the public. Additionally, reducing travel costs would stimulate tourism-dependent industries, such as hotels, transport services, and small businesses, while encouraging more Filipinos to explore domestic destinations. Marcos reiterated that travel is vital for many Filipinos, helping families stay connected and workers sustain their livelihoods.
