Philippines Moves To Scrap Travel Tax As Senator Tulfo Pushes For Cheaper International Travel, Here’s All You Need To Know

Published on November 2, 2025

Senator Erwin Tulfo has submitted a caller measure that seeks to region nan recreation taxation successful nan country. Tulfo argues that nan recreation taxation limits nan law correct to recreation and imposes a financial load connected nan mean national who wishes to spot what nan world has to offer. Under nan taxation system, nan authorities charges group leaving nan state a tax, frankincense making nan opportunities little accessible. Under this bill, nan authorities will make recreation much equitable and much accessible to each citizens.

Understanding nan Travel Tax
The Philippine recreation taxation is presently collected from each citizens walking abroad, isolated from those exempted by rule specified arsenic overseas Filipino workers (OFWs) and diplomats. It was introduced successful nan 1970s and remains successful unit done a bid of legislative acts, including nan Tourism Board Law, Higher Education Act, and nan Tourism Act of 2009.

Under existing rates, travelers departing nan Philippines salary betwixt ₱1,620 and ₱2,700 for system to first-class passage. Reduced rates use for definite groups: ₱810 to ₱1,350 for dependents of OFWs and ₱300 to ₱400 for privileged categories specified arsenic students aliases those connected typical authorities missions.

The collected costs are divided among respective institutions:

• 50% to nan Tourism Infrastructure and Enterprise Zone Authority (TIEZA) for tourism development;
• 40% to nan Commission connected Higher Education (CHED);
• 10% to nan National Commission for Culture and nan Arts (NCCA).

The Case for Abolition
Tulfo’s projected measure seeks to repeal these long-standing provisions, arguing that nan work for tourism, education, and taste backing should dishonesty pinch nan nationalist government—not nan walking public.

“Strengthening tourism programs and infrastructure should not beryllium shifted to taxpayers who already lend substantially done various forms of taxation,” nan measure states.

If passed, nan measurement will reallocate nan backing for TIEZA, CHED, and NCCA from their existing budgets and guarantee that early appropriations for these agencies are included successful nan yearly General Appropriations Act (GAA).

Impact connected Filipino Travellers
The connection has been welcomed by galore predominant travelers and tourism stakeholders who position nan recreation taxation arsenic an further financial hurdle. For mean Filipinos, particularly families and migrant workers, nan taxation tin importantly summation nan costs of world travel.

Abolishing nan levy could lead to cheaper airfares and make overseas recreation much affordable, peculiarly for those walking for education, family reunions, and business opportunities. It is besides expected to boost outbound tourism, which had declined during nan pandemic and has been slow to retrieve compared to location neighbors.

Tulfo believes that eliminating nan taxation will not only easiness nan financial load connected travelers but besides stimulate greater tourism exchange, benefiting some outbound and inbound sectors. “If we really want to amended nan country’s tourism assemblage and beryllium astatine par pinch our neighboring Southeast Asian countries, we person to region these barriers that disempower Filipinos to travel,” he said.

Potential Benefits for Tourism and nan Economy
Industry experts statement that nan connection could person a broader economical impact. Lowering nan costs of recreation whitethorn promote much Filipinos to research destinations wrong nan ASEAN region, which could, successful turn, thrust hose competition, summation tourism spending, and fortify world connectivity.

Travel agencies person expressed cautious optimism, noting that nan abolition could promote much Filipinos to book world trips, while besides promoting inbound tourism arsenic recreation becomes much seamless.

According to tourism expert Rico Fernandez, “Removing nan recreation taxation will make nan Philippines much competitory arsenic a recreation hub. It simplifies pricing structures and removes disorder for passengers who often don’t understand why they’re paying other beyond airdrome fees.”

Funding Concerns and Opposition
However, nan connection has besides drawn immoderate disapproval from those concerned astir nan nonaccomplishment of gross for tourism, education, and taste programs. The recreation taxation presently generates hundreds of millions of pesos annually, backing infrastructure projects, scholarships, and taste preservation initiatives.

Opponents reason that without this dedicated gross stream, agencies for illustration CHED and NCCA mightiness look backing shortfalls. In response, Tulfo’s measure specifies that nan Department of Tourism (DOT) and related agencies will person basal appropriations straight from nan nationalist fund to guarantee continuity of these programs.

Fiscal argumentation experts stress nan request for accountability and transparency successful really early budgets compensate for nan nonaccomplishment of nan recreation taxation revenue.

Regional Context: How nan Philippines Compares
Tulfo’s connection mirrors trends successful different Southeast Asian countries that person moved toward simplified recreation taxes aliases eliminated them altogether to beforehand mobility. Nations specified arsenic Thailand, Malaysia, and Indonesia person streamlined travel-related fees to boost tourism competitiveness and pull much visitors post-pandemic.

By removing nan recreation tax, nan Philippines could align much intimately pinch these practices, positioning itself arsenic a much traveler-friendly destination some for citizens and world tourists.

A Step Toward Inclusive Travel

The imaginable abolition of nan recreation taxation suggests elasticity and state to recreation for nan clients nan young travelers and families. This shows that recreation is little of a luxury, and much of a business, acquisition and taste opportunity that tin beryllium idealized.

Travel taxation abolishment, if group to beryllium successful rule arsenic expected pinch nan passing of Senate Bill No. 1409, will position nan Philippines to a group of countries that supply recreation arsenic a right, and arsenic an added profit to their economically processing countries. This is simply a immense quality successful argumentation arsenic for nan first time, taxation payers, and not nan travelers, will beryllium backing tourism successful nan Philippines.

The tourism, arsenic expected, will displacement to a much demand-side policy, wherever argumentation sponsors will beryllium driven by profit maximization and indenture contribution. This measure will profit greatly pinch vulnerability arsenic nan existent societal and economical building of nan state will position to supply arsenic a afloat unfastened state pinch nan astir tourism potential.