House Majority Leader and Ilocos Norte 1st District Representative Sandro Marcos has filed a bill seeking the immediate abolition of the travel tax, which he described as a heavy burden on Filipinos.
Under House Bill (HB) No. 7443, Marcos proposes to eliminate the travel tax in order to uphold Filipinos’ constitutional right to travel while also stimulating economic growth.
“At present, the Philippines imposes a fiscal burden on travelers by charging P2,700.00 for first-class passage and P1,620,00 for economy class. These rates disproportionately affect lower-income households. For a family of four, the travel tax may reach P6,480.00,” Marcos said in the explanatory note of his bill.
“This amount could have been be allocated to essential household needs or reinvested in the local economy,” noted the presidential son.
Marcos said that although the travel tax has long formed part of the country`s regulatory framework as a revenue-generating mechanism, it has also become a deterrent to travel.
“Taxation on personal travel and online bookings suppresses demand, dampens tourism growth, and discourage mobility,” he said.
The House majority leader said that abolishing the particular tax will reduce travel costs and encourage more frequent domestic international travel by Filipinos.
“Increased traveler volume will stimulate tourism-dependent sectors, including hotels, transportation services, tour operations, and retail establishments, resulting in broader economic activity and job creation,” Marcos said.
He said that unfortunately, the Philippines has become an outlier in the Association of Southeast Asian Nations (ASEAN), wherein most member-states have already abolished similar levies to promote tourism and regional integration.
“The continued imposition of the travel tax runs counter to the ASEAN Tourism Agreement of 2002, which obligates member states to progressively eliminate travel-related levies on ASEAN nationals,” Marcos further said. (Ellson Quismorio)
