Bill to scrap travel tax progresses

A HOUSE of Representatives committee on Monday approved a proposal to abolish the Philippines' travel tax that critics say is burdensome and adds costs for Filipino overseas travelers.

- By Kenneth Christiane L. Basilio Reporter

The House Committee on Tourism has consolidated six bills seeking to scrap the levy collected from air and sea travelers, a tax imposed under a 1977 presidential decree, despite concerns that its removal could cut funding for agencies that rely on the collections to support services.

A consolidated measure proposing the removal of the travel tax will be endorsed to the House Appropriations and Ways and Means committees to iron out provisions on funding and taxes.

"Why is there a travel tax? It was meant to discourage our countrymen from traveling abroad and to instead support domestic tourism," Mark T. Lapid, chief operating officer of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), told lawmakers.

"But it evolved in the years that succeeded... Its purpose became to help all the infrastructure needed for tourism, for our scholars and rehabilitating and improving our heritage sites," he added.

The government collects a travel tax of P1,620 ($28.35) from economy air passengers and P2,700 ($47.24) from first class air passengers, if they are departing to a foreign country.

Exempt from travel tax are overseas Filipino workers, Filipino permanent residents overseas who stayed less than a year in the Philippines, and children aged two years and below.

The levy was first imposed by Republic Act No. 1478 in 1956 and was later amended through Presidential Decree No. 1183 in 1977.