MANILA: Sen. Mark A. Villar is urging his colleagues to ensure the swift passage of Senate Bill No. 1870, or the proposed Travel Tax Abolition Act, which seeks to remove the decades-old travel tax imposed on Filipinos going abroad.
“Leaving the country should not be an extra burden, especially for Filipinos travelling to work, study, get medical treatment, do business, or be with their families. It’s time to remove the travel tax and return to our countrymen the money that they can use for more important needs,” Villar said.
The travel tax was introduced under Presidential Decree No. 1183 in 1977, when overseas travel was widely viewed as a privilege.
Villar called it an “archaic” policy that no longer reflected present realities. As it is, he pointed out, Filipino travellers pay a full travel tax of ₱1,620 for economy-class passage and ₱2,700 for first-class passage. A family of four travelling in economy class must therefore spend an additional ₱6,480 before leaving the country.
“The P6,480 is a big deal for a family. It can be set aside for food, fare, rent, medicine, or other expenses during a trip. Amid a continuing rise in the prices of goods, it’s just right for us to remove a charge that is not suited to the present,” Villar added.
If Senate Bill No. 1870 becomes law, government agencies and private entities will be prohibited from collecting travel tax, and passengers who have already paid the tax for flights scheduled on or after the law’s effectivity will be entitled to an immediate refund.
The proposal also supports the objectives of the Association of Southeast Asian Nations (Asean) Tourism Agreement, which seeks to facilitate travel and promote stronger connectivity among Asean member states.
Villar allayed concerns about possible disruptions to government programs, noting that the bill has safeguards for the continued funding through the annual General Appropriations Act for projects previously supported by travel tax collections.
At present, the travel tax collection to the following agencies:
>50 per cent to the Tourism Infrastructure and Enterprise Zone Authority for tourism development
>40 per cent to the Commission on Higher Education for tourism-related educational programs
>10 per cent to the National Commission for Culture and the Arts
“We will continue to support tourism, education, and culture, but the funds need not come from an extra charge to Filipino travellers. These are national programmes that should be funded through the national budget,” Villar stressed.
“Our goal is simple: Lessen expenses, make travel easier, and give each Filipino more freedom to look for opportunities in whatever part of the world,” Villar said. - Philippine Daily Inquirer/ANN
