Airline operators join push to scrap travel tax

Local airline operators are supporting the proposed abolition of the travel tax, warning that keeping it could continue to discourage overseas travel.

In a Wednesday statement, the Air Carriers Association of the Philippines (ACAP) said the levy is limiting overseas travel, weighing down tourism, and reducing the country’s competitiveness globally.

“Removing the travel tax will directly lower costs for individual travelers, families, student groups, and first-time flyers,” ACAP said.

Member airlines, including Philippine Airlines, Cebu Pacific, Philippines AirAsia, PAL Express, and CEBGO, said they are ready to expand domestic hub networks to accommodate the expected surge in passenger demand and generate economic benefits across the tourism value chain.

ACAP emphasized that airline operators are committed to working with government and industry stakeholders to implement reforms that make travel more accessible while supporting long-term growth in aviation and tourism.

Senator Kiko Pangilinan has filed a bill to scrap the travel tax, which currently costs P2,700 for first-class and P1,620 for economy passengers.

The proposed measure would repeal the travel tax under the Tourism Act of 2009, redirect program funding to the Tourism Infrastructure and Enterprise Zone Authority, and allow refunds for trips after the law takes effect. A similar bill has been filed by Senator Joel Villanueva.

President Ferdinand Marcos Jr. has also identified travel tax abolition as a priority, noting that it could boost passenger demand, increase spending in tourism, and make the country more accessible to international travelers.