Senator Proposes Economy Class Travel Tax Exemption
MANILA, Philippines – Senator Raffy Tulfo has introduced a bill aiming to exempt economy class travelers from paying the travel tax. This proposal, outlined in Senate Bill No. 88, focuses on offering relief to ordinary Filipino passengers without eliminating the tax entirely.
“The measure merely introduces a more equitable structure by retaining the imposition of travel tax on passengers traveling via business class or higher, whose financial standing affords them greater capacity to contribute to national development,” the senator explained in the bill’s explanatory note.
Balancing National Development and Traveler Burden
Senator Tulfo emphasized that the government will continue securing funds for essential agencies like the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and the National Commission for Culture and the Arts (NCCA). These funds support sustainable projects while easing the financial pressure on average Filipino travelers.
He noted that although travel tax revenues are vital for tourism infrastructure, education, and cultural programs, the current system places an unfair burden on economy class passengers. “This is compounded by the already heavy tax obligations imposed on Filipino citizens, including income and consumption taxes,” he added.
Distribution of Travel Tax Revenues
According to Section 73 of Republic Act No. 9593, proceeds from the travel tax are allocated as follows: 50 percent to TIEZA, 40 percent to CHED for tourism-related academic programs, and 10 percent to the NCCA to promote cultural preservation and development.
Call to Repeal Outdated Law
The travel tax’s legal basis stems from Presidential Decree 1183, enacted in 1977. Senator Tulfo is advocating for its repeal, arguing that exemptions should be updated. Currently, Overseas Filipino Workers (OFWs), infants, government officials, and corporations on official travel are exempted from paying this tax.
By focusing the tax on those who can afford it, the proposal aims to make travel more accessible for the average Filipino while maintaining support for key national programs.
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