Saying the policy has long outlived its purpose and hindered mobility based on the financial capacity of Filipinos, Senator Joel Villanueva has expressed support for the growing calls to abolish the travel tax as introduced in Congress by Rep. Sandro Marcos.
Villanueva said he is optimistic that the policy would be given the preferential attention of both houses of Congress after President Ferdinand R. Marcos Jr. included the abolition of travel tax in the administration’s list of priority bills at the recently concluded Legislative-Executive Development Advisory Council meeting.
As a first step of abolishing the levy, Villanueva earlier filed Senate Bill No. 1529 which sought to remove the imposition of travel tax on Filipinos and nationals of ASEAN member-states leaving the Philippines and traveling within the regional bloc.
“The travel tax was created at a time when international travel was a luxury and there was a need to generate additional revenues to fund tourism-related projects. Today, travel is a necessity for work, education, and trade, among others. We can fund tourism projects without penalizing travelers at the airport,” the Senator stated.
He added: “Lowering the cost of travel stimulates demand, creates jobs and expands the tax base,” he continued. “Public policy must evolve with economic reality. The time is ripe for the removal of the travel tax because it is an outdated burden, and this policy shift positions our country as an open and connected economy in the region.”
Villanueva explained that over time, the travel tax became a regressive policy that disproportionately burdened lower- and middle-income Filipinos.
For instance, a family of four intending to travel would have to pay P6,480 as the current travel tax for economy class travelers is P1,620, “which is a significant amount for lower-income households. This is money that could be better used for other necessities or reinvested in the local economy,” the lawmaker said. “With millions of Filipinos traveling abroad every year, this fee can add significant costs to international travel, particularly for those who wish to engage in tourism, pursue educational opportunities, or visit family members overseas,” he noted.
The lawmaker also pointed out that as a member-state of the ASEAN, the Philippines was obligated to adhere to the ASEAN Tourism Agreement signed in 2002. The agreement called for the phasing out of travel levies and taxes on nationals of ASEAN Member States traveling to other ASEAN nations.
“By maintaining the travel tax, the Philippines is failing to fully comply with the agreement, which aims to promote regional integration and ease of travel,” he added.
