Ditch burdensome travel tax for economy class passengers--Rodriguez

Manila Bulletin

Calling it an undue and outdated burden on Filipinos, Cagayan de Oro City 2nd district Rep. Rufus Rodriguez made a compelling pitch in plenary Tuesday night, Aug. 27 for Congress to do away with the travel tax, particularly for economy class airplane passengers. (Video courtesy of House of Representatives)  READ: https://mb.com.ph/2025/08/27/ditch-burdensome-travel-tax-for-economy-class-passengers-rodriguez  Join this channel to get access to perks:  https://www.youtube.com/channel/UC5664f6TkaeHgwBly50DWZQ/join   Subscribe to the Manila Bulletin Online channel! - https://www.youtube.com/TheManilaBulletin   Visit our website at http://mb.com.ph  Facebook: https://www.facebook.com/manilabulletin  Twitter: https://www.twitter.com/manila_bulletin  Instagram: https://instagram.com/manilabulletin  Tiktok: https://www.tiktok.com/@manilabulletin   #ManilaBulletinOnline  #ManilaBulletin  #LatestNews

Transcript

00:00Majority Leader, may distinguished colleagues, I rise today to bring to the attention of this

00:07Auguste Chamber, an issue that has long burdened ordinary Filipinos, that travel tax.

00:17At present, every Filipino departing our country by air is required to pay this tax

00:25regardless of circumstance unless exempted by law, which according to Section 2, PD 1183

00:34would exempt overseas Filipino workers, Filipino permanent residents abroad who stay in the

00:42Philippines is less than one year, and infants two years and below.

00:48So, for families traveling abroad, Mr. Speaker, it becomes an even heavier financial burden.

00:57While traveling should uplift the spirit and broaden our horizons, it has become an unnecessary

01:04burden for ordinary Filipinos, working men and women in the Philippines, students, retirees,

01:13who barely saved enough to purchase a plane ticket.

01:19Mr. Speaker, this tax traces its roots back to PD 1183 signed in 1977.

01:28It was imposed during a time when our country sought to conserve foreign exchange reserves and

01:38fund tourism infrastructure, but times have changed, the Philippines is no longer under the same economic conditions

01:48of the 1970s.

01:51Our tourism sector has expanded, our foreign reserves have grown, and ASEAN neighbors have since abandoned

02:01similar outdated policies.

02:04Yet, here we are in 2025, still charging Filipinos a tax every time they wish to travel abroad.

02:16This is a tax that is not only outdated, but also inequitable.

02:21The Constitution itself recognizes the right of Filipinos to travel.

02:26And then, do we penalize them simply for exercising that right?

02:32What is more concerning is that this tax does not discriminate between rich and poor.

02:39Mr. Speaker, let us ask ourselves, who truly bears the brunt of this tax?

02:46Is it not the wealthy who can easily afford business or first-class tickets?

02:51It is the ordinary Filipino, the workers working in the Philippines, the student joining an exchange program,

03:01retirees, micro and small entrepreneurs, employees both in the government and in the private sector.

03:10The family is scraping together their savings for a once-in-a-lifetime vacation.

03:16For them, the travel tax is a barrier. It is an added expense.

03:24More Filipinos traveling abroad could lead the growth to the travel industry ecosystem,

03:32which include outbound travel-related industries, including passport services, travel agencies,

03:41insurance, logistics, and airport services. Even without the travel tax,

03:48there is the VAT, the income taxes, and the fees from these sectors can continue to generate revenue for the government.

04:00More travel abroad may also lead to greater cultural and educational exposure,

04:05improving the skills and perspectives of Filipinos. Tourism boards and foreign businesses may also take

04:13greater interest in the Philippine market in return. Higher outbound traffic also justifies more flight routes,

04:23more carriers, and larger airport operations, which could lead to Philippine-based airlines benefiting from

04:32higher sales, contributing to jobs and economic activity.

04:38We must remember, Mr. Speaker, that the Philippines' obligations under international agreements,

04:44the ASEAN Tourism Agreement of 2002, to which we are a signatory, commits member states to remove barriers

04:54to travel within the region, including travel levies. Yet, strictly speaking, more than 20 years later,

05:04the Philippines and Cambodia remain as the only ASEAN member nations imposing this outdated tax.

05:13In Indonesia, Thailand, and Singapore, Cambodia, Laos, and Brunei, they pay airport tax or airport fee completely different from a travel tax.

05:27The message is clear. It is time to modernize our policies. This travel tax was created for a different era.

05:35Today, it only acts as a barrier to mobility, a burden on our workers and their families, and a contradiction to our commitment to promote

05:46tourism and financial inclusion. Section 73 of Republic Act 9593 or the Tourism Act of 2009 provides that 50% of the proceeds of the tax

05:58tax go to the Tiesa, while 40% of the proceeds go to higher education for tourism-educated progress. The remaining 10% goes to the

06:09National Commission for Culture and the Arts, where there would indeed be lost revenues on the part of the government which are

06:17allocated for the above purposes. The amounts needed for these agencies can instead be placed in the General Appopulations Act.

06:27Mr. Speaker, I urge this chamber to pass a bill that will abolish the travel tax for all economic-class passengers,

06:38retaining it only for business class with a higher rate of 3,000 pesos, first-class travelers with a higher rate of 5,000 pesos.

06:48Let us send a strong signal that this Congress stands for fairness, accessibility, and the constitutional right of every Filipino

06:57to travel. Let us be the Congress that removes this outdated burden and replace it with a policy more suited to our times. A Congress that does

07:09not stand in the way of its people's dreams, but instead opens the doors to opportunity. Thank you very much, Mr. Speaker.

07:19Thank you very much, Mr. Speaker.

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