Philippines To Abolish Outdated Travel Tax For Boosting Tourism

Saturday, July 19, 2025

In a awesome improvement to boost Philippine tourism, Isenador Alan Peter Cayetano has revenge Senate Bill No. 424, successful an effort to abolish nan Travel Tax imposed nether Presidential Decree No. 1184. Enacted almost 50 years ago, this is simply a decree that imposes a recreation taxation from ₱300 – ₱2,700 connected Filipinos going abroad. Under nan caller bill, nan interest would beryllium abolished arsenic it is deemed outdated and inconsistent pinch nan Philippines’ prevailing economical and location pursuits, according to Senator Cayetano.

The Rationale Behind nan Repeal

Senator Cayetano stressed that nan existent recreation taxation is discriminatory and is simply a “huge burden” connected nan aged and PWDs. The measure seeks to make recreation much affordable for each Filipinos and to found an inclusive tourism marketplace by ending this tax. The legislator notes that authorities revenues are projected to suffer arsenic overmuch arsenic ₱4 cardinal a twelvemonth from this practice. But this imaginable nonaccomplishment is compensated by an estimated ₱299 cardinal projected successful economical gains successful a boost successful tourism and user spending.

Aligning pinch Regional Commitments

The Bills besides respond to nan Philippines’ obligations nether nan 2002 ASEAN Tourism Agreement, which provides for nan implementation of nan gradual elimination of recreation levies among nan personnel States. Senator Cayetano wants to use this exemption to citizens of member-countries of nan Association of South East Asian Nations who, if fixed this privilege, will further easiness activity wrong nan region and fortify economical practice among Southeast Asian nations.

Potential Economic Implications

On 1 hand, nan first financial costs of scrapping nan recreation taxation tin beryllium dense – to nan tune of ₱4 cardinal pesos successful yearly gross nonaccomplishment – but nan allusions outweigh nan contiguous fiscal burden. It will besides spur home spending and an inflow of tourer revenues amounting to an estimated ₱299 cardinal summation for nan economy. At nan halfway of this forecast, tourism’s imaginable arsenic an motor of economical maturation and improvement is reaffirmed.

Previous Efforts and Legislative History

The recreation taxation scrapping is not an wholly original demand. As an example, successful 2019, Senator Aquilino “Koko” Pimentel III revenge a measure to annul nan decree that has been successful spot for 42 years. He said nan imposition of nan recreation taxes namely wrong nan ASEAN contradicts nan commitments nether nan ASEAN Tourism Agreement. Efforts made truthful acold person not moved nan recreation taxation though it still is successful spot pointing to nan urgency of a caller legislative action.

Conclusion: Towards a New Way of Looking astatine Tourism

Travel Experts consciousness that Senator Cayetano’s measure is progressive and forward-looking successful position of tourism policy, considering that nan existent thrust of tourism should reside nan shifts successful economical scenery and location agreements. Scrapping nan recreation taxation will let nan Philippines to beryllium much competitory arsenic a tourer destination and beforehand location practice arsenic good arsenic much inclusive recreation opportunities for each Filipinos.