#Philippines travel tax

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. 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. Value-Added Tax (VAT) is a type of sales tax that applies to goods, properties, and services in the Philippines, as well as to imported goods. However, some travelers still line up at airport travel tax counters, not knowing that Philippine travel tax can be paid online ahead of time. The Philippine Travel Tax is required for most Filipino travelers leaving the country. Read more in our articles including "House committee approves bill abolishing travel tax" and "Value-Added Tax (VAT) Refund for Non-Resident Tourists turns into Law".