House Committee on Tourism Vice Chairman Gil Acosta of Palawan on Saturday said the decades-old travel tax has become a contributing factor to the high cost of travel in the Philippines, lending support to a bill seeking its abolition.
Acosta backed House Bill 7443 filed by House Majority Leader Ferdinand Alexander “Sandro” A. Marcos, which calls for the immediate repeal of the travel tax imposed under Presidential Decree No. 1183, issued in 1977.
“Among ASEAN countries, we are now the only one with an outgoing travel tax. While it is not the main reason for low tourist arrivals, it is definitely one of the factors,” Acosta said Saturday.
Under existing rules, travelers pay up to P2,700 for first-class travel and P1,620 for economy, regardless of income. Acosta said the flat tax structure makes it burdensome, especially for ordinary Filipinos.
“Whether you are rich, middle-income, or poor, once you leave the country, you pay the same travel tax,” he said.
Marcos has said the levy has outlived its purpose and now works against economic recovery, mobility, and regional competitiveness. Acosta echoed this view, noting that travel is no longer a luxury for many Filipinos, as overseas trips are often work-related.
Acosta highlighted how high travel costs affect domestic tourism, particularly in provinces such as Palawan.
Expensive airfares
“Sometimes it is cheaper to travel to Vietnam or Thailand than to go to Palawan or Siargao,” he said, citing expensive airfares and limited infrastructure.
While Palawan is consistently promoted as a top island destination, Acosta said government-built tourism infrastructure remains inadequate, especially in emerging areas such as Balabac.
He said travel tax collections average P4 billion to P5 billion annually, with proceeds distributed to the Tourism Infrastructure and Enterprise Zone Authority, the Commission on Higher Education, and the cultural sector.
Under the proposed bill, funding for these agencies would instead be sourced directly from the General Appropriations Act to ensure stability, particularly during crises such as the pandemic.
Acosta said the House Committee on Tourism will also review how travel tax collections have been utilized, both before and after the pandemic, to determine whether they translated into meaningful improvements in tourism infrastructure.