PTAA backs abolition of travel tax

The Philippine Travel Agencies Association (PTAA) said it supports the abolition of travel tax, an initiative reducing the financial burden on the traveling public and makes travel more accessible and affordable for Filipinos.

“In this light, we are supportive of the proposed abolition of the travel tax, as it directly alleviates out-of-pocket expenses for travelers and encourages greater mobility and tourism activity,” the PTAA said in a statement on Sunday.

President Ferdinand Marcos Jr. earlier vowed to prioritize the enactment of House Bill No. 7443 filed by his son, Ilocos Norte Representative Sandro Marcos, or the abolition of the travel tax imposed on airline passengers, along with 20 pieces of legislation presented by the Legislative Executive Development Advisory Council that were deemed important to be passed towards the end of the first half of the year.

On the other hand, the PTAA also hit the current policy of the Bureau of Internal Revenue, mandating travel agencies to act as collecting agents in relation to the travel tax.

“This responsibility adds operational complexity and administrative costs to agencies, and in some cases exposes them to risks of deficits or discrepancies due to computation or reconciliation issues. Removing this requirement would ease operational strain on agencies, allowing them to focus on service quality, compliance, and growth,” the group said.

While PTAA supports the abolition of the travel tax in principle, they said it respectfully emphasizes the importance of clarity and continuity.

“We seek assurance on how funding will be sustainably sourced for agencies that have historically relied on travel tax revenues, particularly the National Commission for Culture and the Arts and the Tourism Education and Skills Development Authority. These institutions play a critical role in preserving our cultural heritage, developing tourism talent, and strengthening the long-term competitiveness of the Philippine tourism industry,” the statement said.