Travel tax abolition could boost P46 billion in economic output – economist

The proposal of House Majority Leader Ferdinand Alexander “Sandro” A. Marcos to abolish the travel tax received full backing from former Albay Rep. Joey Sarte Salceda, who urged Congress to approve the measure.

“I think it should be passed because it will help. Every positive measure should be considered,” Salceda, former chairman of the House Committee on Ways and Means, said during the Saturday Media Forum at Dapo Restaurant in Quezon City.

He noted that the travel tax discourages Filipinos from traveling “because it increases the cost of travel.” Abolishing the levy would mean the government foregoes an annual income of P11 billion, but scrapping it could generate P46 billion in economic output, Salceda stressed.

“When you travel, you eat in restaurants, you go to hotels, there is lodging. So kain, siyempre souvenir,” he added.

Marcos’ travel tax abolition proposal is contained in House Bill (HB) No. 7443. In filing the bill, the House leader said:

“The travel tax was created in a very different economic context. Today, it has become an added cost that restricts mobility and weighs heavily on ordinary Filipinos who simply want to travel for work, family, or opportunity.”

The levy is currently set at P1,620 for economy-class passengers and P2,700 for first-class travelers.

“Travel is not a luxury for many Filipinos. It is part of how families stay connected and how workers sustain their livelihoods,” Marcos said.