THE PROPOSED abolition of the travel tax is among the 21 priority legislative measures approved by President Ferdinand R. Marcos Jr. under the Legislative-Executive Development Advisory Council (LEDAC), Malacañang said on Tuesday, February 10.
Palace Press Officer Claire Castro said the President placed particular emphasis on easing the financial burden on travelers, noting that many Filipinos travel not only for leisure but also for work and emergency reasons.
She explained how the levy is currently allocated, of which 50 percent goes to the Tourism Infrastructure and Enterprise Zone Authority’s (TIEZA) tourism infrastructure projects, 40 percent to educational assistance and scholarships, and 10 percent to promote culture and heritage.
On concerns that abolishing the travel tax could reduce funding for education and tourism promotions, Castro said the government would cover any funding gaps through the national budget, once the proposed bill is enacted.
“Kapag po ito ay na-abolish na po lahat… ito naman po ay popondohan ng gobyerno… sa pamamagitan po ng GAA (General Appropriations Act),” she said.
Castro said economic managers discussed the measure’s potential benefits, particularly in easing travel costs, but noted that details on revenue impact would be tackled once the bill is formally crafted.
Meanwhile, travel industry group Global Tourism Business Association (GTBA) on Tuesday expressed support for the House tourism panel’s plan to review the utilization of travel tax collections.
“We believe it’s time to review and reform our rules on travel tax to make it more effective and equitable. At the end of the day, we want to ensure that the travel tax benefits our tourism industry and local communities,” GTBA founding chairman Michelle Taylan said.
On February 7, House tourism committee vice chairman and Palawan’s Rep. Gil Acosta called for congressional review on the utilization of travel taxes collected from Filipinos traveling abroad.
The lawmaker said travel tax collections average P4 billion to P5 billion annually, with proceeds divided among the TIEZA, the Commission on Higher Education (CHED), and the cultural sector. (PNA/GMA Integrated News)
