Abolishing the Travel Tax

Office of the e TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES FEB 12 A11 58 First Regular Session RECEIVED BY: S. No. 4T49 INTRODUCED BY SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO AN ACT ABOLISHING THE TRAVEL TAX EXPLANATORY NOTE The right to travel is guaranteed under Article III, Section 6 of the 1987 Constitution, which provides that such right shall not be impaired except in the interest of national security, public safety, or public health. As a fundamental principle, the State must ensure that lawful movement of persons is not burdened by unnecessary restrictions. Despite this constitutional guarantee, the Philippine government imposes a travel tax on Filipinos and certain foreign nationals leaving the country. The travel tax was originally established under Presidential Decree No. 1183, and later incorporated and amended under Republic Act No. 9593, otherwise known as the Tourism Act of 2009. Under existing law, the proceeds of the travel tax are distributed as follows: fifty percent (50%) to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), forty percent (40%) to the Commission on Higher Education (CHED), and ten percent (10%) to the National Commission for Culture and the Arts (NCCA). The imposition of the travel tax runs counter to the State's commitments under the ASEAN Tourism Agreement of 2002, which encourages the progressive removal of travel-related barriers among ASEAN member states to promote tourism, mobility, and regional integration.

In view of the constitutional guarantee of the right to travel, the Philippines regional obligations, and the need to promote mobility and economic cooperation within ASEAN, this bill seeks to abolish the travel tax on Filipinos and on nationals of ASEAN member states traveling to other ASEAN member states. In view of the foregoing, immediate approval of this measure is earnestly sought.

Olite of the se TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES FEB 12 A11 .58 First Regular Session RECEIVED BY: SENAT 849 S. B. No. INTRODUCED BY SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO AN ACT ABOLISHING THE TRAVEL TAX Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION. 1. Abolishing the Travel Tax. - Travel tax imposed under

2 Presidential Decree No. 1183, as amended, and Section 73 of Republic Act No. 9593, 3 otherwise known as the "Tourism Act of 2009" shall no longer be imposed on the 4 following individuals: (a) Filipinos leaving the Philippines; and (b) Nationals of Association of Southeast Asian Nations (ASEAN) Member States leaving the Philippines and travelling to other ASEAN Member States. No government agency or private entity shall collect travel tax upon the effectivity 9 of this Act. For flights scheduled immediately after the date of the effectivity of this 10 Act, the collecting authority shall refund any previously paid travel tax to the 11 passenger.

SEC. 2. Budget and Alternative Funding. - The national government shall

ensure and provide necessary funding for the following agencies through the annual General Appropriations Act: (a) The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) for tourism development projects;

(b) The Commission on Higher Education (CHED) for tourism-related higher education development fund; and (c) The National Commission for Culture and the Arts (NCCA) for the National Endowment Fund for Culture and the Arts.

SEC. 3. Separability Clause. - If any portion or provision of this Act is declared

unconstitutional, the remainder hereof or any provisions not affected thereby shall remain in force and effect.

SEC. 4. Repealing Clause. - Presidential Decree No. 1183, as amended, and

any other law, issuance, executive order, letter of instruction, rule, or regulation inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 5. Effectivity- This Act shall take effect fifteen (15) days after its complete

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