Senator Erwin Tulfo on Monday called for a thorough review of the country’s travel tax collections and use, as proposals to abolish the levy gain ground in the Senate and Malacañang.
In an interview on DZRH, Tulfo said the Senate Committee on Tourism is expected to schedule a hearing on pending measures seeking to remove the tax.
“Matagal nang sinisingil ang travel tax, kaya dapat malinaw sa publiko kung saan napupunta ang pondo at paano ito nakatulong sa turismo,” he said.
He noted a similar bill filed by Sen. Juan Miguel Zubiri, with proposals likely to be consolidated under the committee he believes is chaired by Sen. JV Ejercito.
Tulfo, who heads the Senate Committee on Foreign Relations, said passage before the Senate’s March adjournment may be unlikely, citing fiscal concerns that often stall measures involving government revenues.
“Kapag usaping kita ng gobyerno ang maaapektuhan, laging may agam-agam. Pero kailangan din nating timbangin ang benepisyo sa mga Pilipinong biyahero,” he said.
He acknowledged potential opposition from the Department of Finance due to foregone income but argued that lower travel costs would benefit more Filipinos.
Outbound travelers currently pay P1,620 in travel tax for economy class, with higher rates for premium seats.
Questions on fund use
Tulfo said lawmakers are scrutinizing how travel tax proceeds have been spent over decades. He stressed that collections are intended to support tourism infrastructure—such as transport facilities, terminals, and public amenities—yet improvements in several destinations remain limited.
“Kung para sa infrastructure ang koleksiyon, dapat nakikita ito sa mas maayos na paliparan at pasilidad sa mga destinasyon,” he said.
He said any repeal deliberations should include an audit of past collections to ensure transparency and accountability.
Tourism impact
While repeal would primarily aid Filipinos traveling abroad, Tulfo pointed to persistent issues in domestic tourism, including costly airfares to local destinations that can exceed trips to nearby countries.
He cited data from the Department of Tourism and Department of Transportation indicating low passenger loads on certain routes, which push airlines to raise fares or cancel services.
“Kung mas magiging abot-kaya ang biyahe, mas maraming Pilipino ang makakapaglakbay at makakatulong ito sa buong sektor ng turismo,” he said.
He said the government could redirect resources to upgrade airports and runways in key areas and intensify promotions for local travel in partnership with local governments.