The House Committee on Ways and Means has taken a significant step toward eliminating the long-standing travel tax imposed on departing Filipino travelers. During a hearing on Monday, the committee approved an unnumbered substitute bill that consolidates multiple proposals to scrap this decades-old levy.
Committee Approval and Legislative Support
Presided over by Marikina Representative Miro Quimbo, the hearing saw House Deputy Majority Leader Ernesto "Ernix" Dionisio of Manila move for the approval of the substitute bill. This measure was filed by lawmakers led by House Majority Leader Ferdinand Alexander "Sandro" Marcos of Ilocos Norte. Dionisio stated, "I would like to move now that we approve subject to style sections 2 and 3 of the unnumbered substitute bill of House Bill Nos. 7443, 7367, 7612, 7703, 7757, 150, 3529, 3890, 4793, 5821, 6228, 6979, 7155, 7307, 7631, 7695, and 7758, entitled 'An Act Abolishing the Travel Tax, I so move Mr. Chair." With no objections raised, Quimbo declared the motion approved, effectively advancing the bill for plenary consideration.
Government Backing and Funding Concerns
Representatives from the Department of Finance and the Department of Budget and Management expressed their support for the proposal during the hearing. Quimbo emphasized that while programs funded by travel tax collections remain crucial, their financing should not rely on the unpredictable number of travelers. He argued, "Because this is important, this should be funded directly by the National Budget or the General Appropriations Act. The survival of these programs should not be dependent on the number of travelers. They are far too important to be dependent on unpredictable numbers." He further stressed that the tax system should maintain progressiveness and avoid placing undue burdens on ordinary Filipinos.
Bill Details and Legislative History
The substitute bill consolidates several proposals aimed at repealing the travel tax, including HB 7443 filed by Marcos and similar measures from other lawmakers. It seeks to abolish the tax imposed under Presidential Decree No. 1183 and related provisions of the Tourism Act of 2009. Funding for programs currently supported by the levy would be provided through the General Appropriations Act instead. Earlier, the House Committee on Tourism, chaired by Romblon Representative Eleandro Jesus Madrona, had also approved measures to abolish the travel tax.
Impact on Programs and Travelers
Currently, travel tax collections fund programs of the Tourism Infrastructure and Enterprise Zone Authority, the Commission on Higher Education, and the National Commission for Culture and the Arts. Lawmakers supporting the bill argue that abolishing the levy would reduce travel costs for Filipinos, particularly benefiting middle-class families and young travelers. They also aim to ensure that tourism, education, and cultural programs continue to receive stable funding through the national budget, rather than fluctuating with travel numbers.
The House Committee on Appropriations will now further deliberate on the measure as it moves closer to potential enactment.
