House approves travel tax abolition bill on 2nd reading

MANILA, Philippines — The House of Representatives approved a proposal to abolish the travel tax on second reading, easing the burden on Filipino travelers.

At the plenary session on Wednesday, House Bill No. 8464 was approved via viva voce, or voice vote. House Committee on Tourism Chairperson and Romblon Rep. Eleandro Jesus Madrona sponsored the bill, with only Caloocan Rep. Edgar Erice interpellating on the measure.

Afterwards, Deputy Speaker Yevgeny Emano granted a motion to approve the measure on second reading.

HB No. 8464 had just been discussed by the House Committee on Appropriations on Wednesday, the third and final panel to deliberate on the measure. On Tuesday, the bill had cleared the House Committee on Ways and Means.

If enacted, the bill will 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.

READ: Sandro Marcos seeks abolition of travel tax

According to Majority Leader Ferdinand Alexander Marcos, author of HB No. 7443, he pushed for the repeal of the travel tax because it is an outdated financial burden on passengers.

“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.

Currently, the travel tax generates around P8 billion annually — proceeds of which go to the Tourism Infrastructure and Enterprise Zone Authority, the Commission on Higher Education (CHEd), and the National Commission for Culture and the Arts.

The proposed removal of the travel tax has raised concerns from the CHEd, as a substitute funding source is needed—revenues from the tax support the Higher Education Development Fund, mandated under Republic Act No. 7722.

During the hearing, House Committee on Appropriations Chairperson and Nueva Ecija Rep. Mikaela Angela Suansing said the panel supports the removal of the travel tax but also wants to ensure that any funding gaps are properly addressed.

“I’m not saying that we shouldn’t fill the vacuum. I’m not saying that at all. I am very much supportive, and that’s why we’ve been working with the Department of Finance (DOF) and the Department of Budget and Management (DBM) to make sure the funding vacuum is filled,” she said.

“I just want to make sure that whichever vacuum we’re filling is the amount that the agencies really need and will utilize,” she added.

Before the bill was approved, Suansing reiterated that economic managers have vowed to help bridge the funding gap caused by the proposed travel tax abolition.

“Before we end the discussion on this, again to the DOF and the DBM — we are able to pass this measure with the strong commitment of the DOF and the DBM to help the three agencies bridge the gap in terms of the funding vacuum,” she said.

“Please, please, please hold up your end of the bargain. Please work very hard with the three agencies to ensure that the necessary funding is supplied,” she added.

READ: Travel tax abolition among 21 Marcos priority bills 

The proposed travel tax abolition is also one of the 21 proposed bills that were identified by the Legislative-Executive Development Advisory Council as priority legislation.

In a press briefing last February 10, Palace Press Officer Claire Castro said President Ferdinand Marcos Jr. expects Congress to pass these bills by June, a month ahead of his State of the Nation Address. /mcm