The House Committee on Ways and Means has approved a proposal seeking to abolish the travel tax imposed on Filipinos leaving the country.
The measure aims to amend a 49-year-old law that originally introduced the travel tax when international travel was largely limited to wealthy Filipinos.
According to committee chair Miro Quimbo, the policy no longer reflects current travel patterns, as international travel has become more accessible to middle-class Filipinos and younger travelers.
Quimbo said that while programs funded by the travel tax remain important, the country’s tax system should remain progressive and avoid placing additional burden on ordinary travelers.
Estimates presented during the hearing suggest that removing the travel tax could generate around PHP 22 billion in additional economic activity, which proponents say could offset the revenue currently collected through the levy.
Lawmakers also noted that the Philippines is the only country in Southeast Asia that continues to impose a travel tax on outbound passengers, raising questions about its impact on the country’s competitiveness as a regional travel hub.
The proposal is among the tax reform priorities of the administration of Ferdinand Marcos Jr.. A similar measure has been filed by Ferdinand Alexander Marcos.
The bill will proceed to the next stages of the legislative process before it can become law.
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