THE SENATE is prioritizing the passage of a measure that seeks to abolish the travel tax within the year.
The proposed legislation, which has already cleared the House of Representatives, is set to be taken up on the Senate floor as part of a broader package of priority tax reforms aimed at boosting economic growth and easing financial burdens on travelers.
During a forum organized by the Management Association of the Philippines, Senate President Pro Tempore Sherwin Gatchalian outlined the chamber’s legislative agenda, noting that while removing the travel tax is projected to result in an estimated P6-billion revenue loss, the Senate expects the shortfall to be offset by the resulting growth in the tourism industry.
“Ang revenue loss niya, estimate, is almost around P6 billion. We think that it will be offset by the growth in the tourism industry,” Gatchalian said.
Aside from removing the travel tax, among the priority bills are the general tax amnesty bill, GINHAWA bill or the bill that increases income exemption to cover those with up to P400,000 annual pay. The senator noted this is higher than the proposal of President Marcos, which is up to P350,000.
Lawmakers are likewise studying the removal of value-added tax (VAT) on system losses, with an ultimate goal of eliminating system loss charges altogether.
To compensate for potential revenue losses arising from these tax relief measures, the upper chamber is reviewing adjustments to other revenue streams, including potential adjustments to sin taxes on alcohol, tobacco, and vapor products. (ABS-CBN News)
