Marikina City Rep. Miro Quimbo on Sunday said the proposed abolition of the travel tax authored by House Majority Leader Ferdinand Alexander “Sandro” A. Marcos of Ilocos Norte could generate as much as P22 billion in additional annual income for the government—far exceeding the projected P7.5 billion in foregone revenues.
Quimbo, chairman of the House Committee on Ways and Means, cited the panel’s computation.
“So ‘yun po ang overall for the 7.5 billion na mawawala po natin ‘pag tinanggal po natin annually. So sa computation po namin ‘yung madadagdag in terms of income tax, dahil mas malaki ang kikita nila, aabot po ng P22 billion. No brainer po talaga siya,” Quimbo said.
Marcos filed House Bill (HB) No. 7443, which has been included in the Legislative-Executive Development Advisory Council’s Common Legislative Agenda (LEDAC-CLA).
The government will remove the current levy of P1,620 for economy-class passengers and P2,700 for first-class travelers under the proposal.
“Kapag tinanggal po natin yung P1620 sa isang plane fare… meaning mas maraming tao ang makaka-biyahe. So mas madadagdag ang kikitain ng ating travel agencies, ating airline companies. No brainer,” Quimbo said, noting that lower fares could mean a 20 percent reduction in ticket costs for popular destinations such as Singapore and Bangkok.
The solon added that the Philippines is now the only country in the Association of South East Asian Nations (ASEAN) collecting a tax on outbound travel.
“At saka tayo nalang po ang nangongolekta ng tax for outbound travel sa buong ASEAN. Wala na po nangongolekta nyan,” Quimbo said.
He stressed that while there may be “initial na kawalan,” collections over the next 18 months would more than offset the losses.
“Mas malaki po over the next 18 months ang mas makokolekta at higit pa doon,” Quimbo said.
Quimbo explained that the travel tax was originally imposed during the time of former President Ferdinand Marcos Sr., when overseas travel was limited mostly to the wealthy.
“But today everybody travel. So malaking sagabal po ito pagdating sa ability ng ating mga kababayan na mag-biyahe,” he said.
Funds previously earmarked for tourism infrastructure, education-related tourism, and cultural programs are already covered under the General Appropriations Act, he added.
“Sa kahit anong angulo po talaga napaglumaan na po itong tax na ito,” Quimbo said.
Quimbo said the House is targeting passage before the June break.
“Ako, I’m very very sure bago matapos ang first regular session… Ibig sabihon bago kami mag-June break, ‘yan po ay maipaipadala na namin sa Senado,” Quimbo assured.
He also underscored that tax measures must originate from the House under the Constitution.
“May tatlong bagay po na nanggagaling lang sa Lower House, impeachment, appropriations, at pangatlo is taxation,” Quimbo said.