DOT on moves to scrap travel tax: It’s up to lawmakers

Local

A PUSH in Congress to scrap travel taxes for Filipinos has reopened a policy debate over the cost of travel and the funding of tourism programs.

However, the Department of Tourism (DOT) has indicated it is not backing the proposal outright, saying it will defer to lawmakers even as it stressed that travel tax collections play a key role in financing tourism infrastructure and heritage preservation nationwide.

Cebu City South District Rep. and House Deputy Majority Leader Eduardo “Edu” Rama Jr. filed House Bill No. 7367 on Tuesday, January 27, 2026, seeking to abolish the travel tax imposed on Filipino nationals leaving the Philippines.

Rama said the proposal aims to ease what he described as an undue financial burden on families, students, senior citizens, and overseas Filipino workers.

“All Filipinos must be able to travel freely, without undue financial or regulatory hindrance,” Rama wrote in the bill’s explanatory note.

Under existing rules, travelers pay travel taxes ranging from P300 to P2,700 per departure, depending on flight class and eligibility for reduced rates.

First-class passengers pay P2,700, while economy-class travelers pay P1,620.

Reduced rates are set at P1,350 for first class and P810 for economy, while overseas Filipino workers pay P400 for first class and P300 for economy.

Rama said these fees can add up, especially for families or groups traveling for work, study, or personal reasons.

He also cited the Philippines’ commitments under the 2002 ASEAN Tourism Agreement, which encourages member states to facilitate travel and phase out certain travel-related taxes.

The lawmaker pointed to Memorandum Order No. 29, which exempts travelers departing from Mindanao and Palawan airports from travel taxes when flying to Brunei, Indonesia, and Malaysia under the BIMP-EAGA initiative.

The proposed measure seeks to stop the collection of travel taxes for flights booked after the law takes effect and repeal Presidential Decree No. 1183 and related laws.

The bill is now pending before the House of Representatives for committee deliberation and plenary discussion.

Tourism Secretary Christina Frasco said the travel tax “provides benefits to the Filipino people,” noting that 50 percent of the collections are allocated to tourism infrastructure.

During the ASEAN Tourism Forum opening at the Mactan Shrine in Lapu-Lapu City, Frasco told reporters that the government is able to provide local tourism infrastructure projects to local government units across the Philippines, including tourist rest areas.

“Kasama na diyan ang… tourism information centers, jetty ports, boardwalks, visitor centers, and the like,” she added.

Frasco said that around 40 percent of travel tax revenues support tourism education, while 10 percent are allocated to heritage agencies.

She noted that this funding helps preserve the country’s cultural and heritage destinations and expressed hope that legislators will recognize the tangible benefits of the travel tax.

She added that tourism infrastructure in the Philippines is expected to be funded through these revenues.

The Tourism Infrastructure and Enterprise Zone Authority said the travel tax is imposed on individuals leaving the country regardless of where airline tickets are issued or paid, as provided under Presidential Decree No. 1183, as amended.(MyTVCebu)