House Committee on Tourism Vice Chairman Gil “KabarangayJr” Acosta of Palawan on Saturday said the decades-old travel tax has become one of the factors driving up travel costs in the Philippines.

Acosta's statement lends support to a bill filed by House Majority Leader Ferdinand Alexander “Sandro” A. Marcos seeking travel tax abolition.

“Parang sa lahat ng bansa sa ASEAN ngayon, tayo na lang ang may outgoing tax. So nakakadagdag. Although hindi ito ang [major na] dahilan kung bakit mababa ang pagpasok ng turismo, definitely one of the causes itong travel tax na imposition natin,” Acosta told the Saturday Media Forum at Dapo Restaurant in Quezon City, adding that the levy has become an added cost for travelers.

The solon noted that Presidential Decree (PD) No. 1183, issued in 1977, imposes a travel tax on Filipinos and foreigners departing the country, a policy he said no longer fits present-day realities.

He said several measures are pending before the House Committee on Tourism, including House Bill (HB) No. 7443 filed by Marcos, which calls for the immediate abolition of the travel tax.

Under HB 7443, the travel tax imposed under PD 1183 and related provisions of the Tourism Act of 2009 would be repealed, ending the collection of charges that now reach P2,700 for first-class passengers and P1,620 for economy travelers.

Marcos earlier said the levy has outlived its purpose and now works against economic recovery, mobility, and regional competitiveness.

His view was echoed by Acosta, stressing that the flat nature of the tax makes it burdensome regardless of income.

“Regardless kung mayaman ka, middle income ka o mahirap ka, basta umalis ka meron kang travel tax,” Acosta said.

Acosta also highlighted how high travel costs affect domestic tourism, particularly in provinces like Palawan.

“Ang problema na lang ay iyong fare ng eroplano dahil napakamahal. Tama ho minsan mas mura pang pumunta ng Vietnam kahit na may travel tax, pumunta ng Thailand kaysa pumunta sa amin o sa Siargao,” Acosta said.

While Palawan is often cited as one of the world’s best island destinations, Acosta said this reputation is not matched by adequate government-built tourism infrastructure.

“But sometimes it is in paper only kasi wala akong masyadong tourism infrastructure. Now may magandang mga puntahan sa amin, yung Balabac, napakarami ang mga nagpupunta. Pero in terms of infrastructure ay halos non-existent pa,” Acosta said.

He said travel tax collections average P4 billion to P5 billion annually, with proceeds divided among the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and the cultural sector.

The proposed bill of Marcos sought funding for these agencies be sourced directly from the General Appropriations Act (GAA). 

“Mas maganda nga kasi kami we’re willing to put it doon sa General Appropriations Act kesa ‘yung budget mo sa tourism infrastructure naka-depende doon sa dami ng mga aalis,” Acosta said, citing the vulnerability of tourism funding during crises such as the pandemic.

He added that travel is no longer a luxury for many Filipinos.

“Ngayon sabihin natin for a 21st century traveling Filipino, iyong pag-alis sa bansa, not necessarily it’s a luxury. Minsan trabaho,” Acosta said.

For Acosta, these realities strengthen the push behind Marcos’ proposal and other related measures.

“Kaya ho dapat kung ako, dito sa mga panukalang ito I’ll go with total abolition. Tanggalin na natin,” Acosta said.