The House Committee on Appropriations has approved a measure to scrap the travel tax, moving the proposal closer to a plenary vote while securing assurances that programs funded by the levy would continue to receive support.
The proposal centers on House Bill 7443 authored by Majority Leader Sandro Marcos of Ilocos Norte. Marcos is pushing for the repeal to ease the financial burden on Filipino travelers, calling the tax “outdated and restrictive.”
“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,” Marcos said.
Imposed under Presidential Decree No. 1183 and provisions of the Tourism Act of 2009, the travel tax generates roughly P8 billion annually. Its proceeds fund key government agencies, including the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHEd), and the National Commission for Culture and the Arts (NCCA).
The measure reached the Appropriations panel after the House Committees on Tourism and Ways and Means approved a consolidated bill earlier. Fiscal committees were tasked with determining how the government would replace the revenues that currently support tourism, education, and cultural programs.
Committee chair Rep. Mikaela Angela Suansing of Nueva Ecija expressed strong support for abolishing the tax but emphasized that the funding gaps must be carefully addressed.
“I’m very supportive, and that’s why we’ve been coordinating with the Department of Finance (DoF) and the Department of Budget and Management (DBM) to ensure that the funding vacuum is filled,” Suansing said.
“I just want to make sure that whichever vacuum we’re filling matches the real needs of the agencies,” she added.
Before the panel approved the measure, Suansing reminded the government’s economic managers of their commitment to bridge the funding gap.
“We are passing this measure with the strong commitment of the DoF and DBM to help the three agencies cover any funding shortfall. Please work closely with the agencies to ensure that the necessary resources are supplied,” she said.
DoF and DBM representatives assured the lawmakers they would coordinate with the agencies concerned to address their funding needs after the tax is abolished.
The TIEZA noted that travel tax revenues account for most of its operating budget, helping finance tourism infrastructure projects nationwide. The CHEd highlighted that the Higher Education Development Fund relies heavily on travel tax collections to support scholarships, research, and institutional upgrading. The NCCA said its share funds grants, cultural programs, and heritage conservation initiatives across the country.
With the Appropriations panel’s approval, the repeal of the travel tax moves a step closer to becoming law, offering the promise of cheaper travel for Filipinos while ensuring that vital government programs will be supported.