BUSINESS

Go leaves travel tax query to Congress

‘I think it should be passed because it will be a big help to ordinary travelers.’

Toby Magsaysay, Alvin Murcia

The decision to abolish the controversial travel tax is better left to the House of Representatives, according to Finance Secretary Frederick Go.

Speaking in a recent interview, Go said Congress should decide the matter.

“We leave it to the wisdom of Congress,” Go said, noting that revenues from the travel tax are not remitted to the national government.

House Majority Leader Ferdinand Alexander “Sandro” A. Marcos has filed a measure to abolish the travel tax.

“I think it should be passed because it will be a big help to ordinary travelers,” former Albay Rep. Joey Salceda, the former chairman of the House Committee on Ways and Means, said in a forum.

He said the travel tax discourages Filipinos from traveling “because it increases the cost of travel.”

Administered by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the levy was imposed in 1977 under the administration of former President Ferdinand Marcos Sr.

It aims to fund tourism infrastructure and promotion, cultural programs, and higher education development by imposing fees ranging from P1,620 to P2,700 on Filipinos departing for international travel.

“Fifty percent goes to TIEZA, 40 percent goes to CHEd, [and] 10 percent goes to the arts,” Go added.

The Philippines remains the only country in the world that imposes a tax on its citizens for leaving the country. In 2025, Senator Erwin Tulfo filed Senate Bill 1409, which seeks to abolish the Philippine travel tax entirely.

He argued that the tax makes travel more expensive for Filipinos and runs counter to regional agreements that encourage easier travel within Southeast Asia.

President Ferdinand Marcos Jr. earlier this month made the abolition of the travel tax an administrative priority, echoing the points raised by Tulfo and other Filipinos.

“The President saw that this would make travel more affordable for tourists and for Filipinos who need to travel,” said Presidential Spokesperson Claire Castro.

Tourism backlash seen

However, Tourism Secretary Christina Frasco noted that the sudden abolition of the travel tax without a substitute fund could adversely affect the tourism sector. She said that 50 percent of travel tax collections support tourism infrastructure such as tourist rest areas, visitor centers, and jetty ports through TIEZA.

Rep. Marcos said the levy has already outlived its purpose.

“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,” he added.

House Bill 7443 aims to repeal Presidential Decree No. 1183 and related provisions of the Tourism Act of 2009 that impose the travel tax.