Abolishing the Travel Tax

S018 Offire of the Suitary TWENTIETH CONGRESS OF THE 25 SEP 24 P12:49 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY SENATE Senate Bill No. 1409 Introduced by Senator Erwin T. Tulfo AN ACT ABOLISHING THE TRAVEL TAX EXPLANATORY NOTE In our country, the right to travel abroad is burdened with the imposition of a travel tax in the following amounts: TRAVEL TAX RATES FIRST CLASS ECONOMY PASSAGE CLASS PASSAGE Full Travel Tax Php 2,700.00 Php 1,620 Standard Reduced Travel Php 1,350.00 Php 810.00 Tax Privileged Reduced Travel Php 400.00 Php 300.00 Tax for a Dependent of an Overseas Filipino Worker (OFW) Pursuant to Section 73 of Republic Act No. 9593 or the Tourism Act of 2009, fifty percent (50%) of travel tax collections accrue to the Tourism

Infrastructure and Enterprise Zone Authority (TIEZA), forty percent (40%) to the Commission on Higher Education (CHED) for tourism- related programs, and ten percent (10%) to the National Commission for Culture and the Arts (NCCA). On November 4, 2002, the Philippines signed the ASEAN Tourism Agreement, which under Article 2(3) mandates the removal of travel levies and taxes on nationals of ASEAN Member States. Yet, nearly fourteen years after its signing, such travel taxes continue to be imposed. This measure represents a concrete step toward ensuring that travel becomes more equitable, accessible, and reasonably priced for Filipinos. Likewise, the responsibility of strengthening tourism programs and infrastructure rests with the national government and should not be shifted to taxpayers, who already contribute substantially through various forms of taxation. In view of the foregoing, the passage of this bill is earnestly sought. ERWIN T. TULFO

Senate Office of the Scurtary TWENTIETH CONGRESS OF THE 25 SEP 24 P12:50 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: SENATE Senate Bill No._ 1409 Introduced by Senator Erwin T. Tulfo AN ACT ABOLISHING THE TRAVEL TAX Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Repeal. - Provisions of laws relating to the authority

to collect or receive funding from the collection of Travel Tax, including but not limited to, Republic Act No. 1478, as amended, Republic Act No.7722, and Republic Act No. 9593, are hereby repealed.

SEC. 2. Effect of Repeal. - The collection of travel taxes will be

prohibited after the effectivity of this Act. For flights that are scheduled on or after the effectivity of this Act, the travel taxes paid shall be refunded immediately.

SEC. 3. Appropriations. - The amount necessary for the programs

funded by the travel tax collections and for the implementation of this Act shall be charged to the respective appropriations under the current General Appropriations Act (GAA) of the Department of Tourism for the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED) for the Higher Education Development Fund, and the National Commission for Culture and the Arts (NCCA) for

the National Endowment Fund for Culture and the Arts. Thereafter, such sums as may be necessary shall be included in the annual GAA.

SEC. 4. Implementing Rules and Regulations. - Within sixty (60)

days from the approval of this Act, the TIEZA shall formulate the implementing rules and regulations in connection with the immediate refund provided in Section 2 hereof.

SEC. 5. Separability Clause. - If any provision of this Act is

declared invalid or unconstitutional, the other provisions not affected by such declaration shall remain in full force and effect.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in a newspaper of general circulation. Approved,