THE government could forgo about P8 billion annually if a proposal to abolish the travel tax goes through, Finance Secretary Frederick D. Go said.
Mr. Go said the Department of Finance will defer to Congress whether it passes laws to scrap the travel tax, which has been described as holding back the expansion of international travel.
“I imagine the entire travel tax revenue is P8 billion a 12 months,” he told reporters on the sidelines of a Customs event on Feb. 18.
President Ferdinand R. Marcos, Jr. urged Congress to abolish the travel tax by the point legislators adjourn in June.
The travel tax measure was amongst 21 priority bills of the Legislative-Executive Development Advisory Council.
Mr. Go noted that proceeds from this duty don’t go to the National Government but to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).
Under the law, 50% of the proceeds from the travel tax collection go to TIEZA, while 40% go to the Commission on Higher Education for tourism-related education schemes.
The remaining 10% goes to the National Commission for Culture and the Arts.
Overseas Filipino staff are exempt from paying the travel tax.
The travel tax was first imposed with the signing of Republic Act No. 1478 in 1956, and later amended through Presidential Decree No. 1183 in 1977.
Federation of Philippine Industries Chairperson Elizabeth H. Lee said on Thursday via Viber: “The abolition of the Philippine travel tax represents a protracted‑overdue reform that removes an outdated burden on outbound travelers.”
The proposed abolition will ease costs for peculiar residents and businesses, while supporting tourism and trade, Ms. Lee added.
She also noted that, unlike the Philippines, regional peers like Singapore, Malaysia, and Thailand depend on standard airport service charges moderately than travel tax.
“By aligning with regional practice, the Philippines strengthens its competitiveness, promotes greater mobility, and affirms its commitment to deeper ASEAN integration.
Foundation for Economic Freedom President Calixto V. Chikiamco said abolishing the travel tax will encourage more travel abroad.
“At present, there are more outgoing Filipinos than foreign travelers to the Philippines,” he noted via Viber. — Aubrey Rose A. Inosante