Philippines Moves to Scrap Travel Tax as Senator Tulfo Pushes for Cheaper International Travel, Here’s All You Need to Know

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Senator Erwin Tulfo has submitted a new bill that seeks to remove the travel tax in the country. Tulfo argues that the travel tax limits the constitutional right to travel and imposes a financial burden on the average citizen who wishes to see what the world has to offer. Under the tax system, the government charges people leaving the country a tax, thus making the opportunities less accessible. Under this bill, the government will make travel more equitable and more accessible to all citizens.

Understanding the Travel Tax
The Philippine travel tax is currently collected from all citizens traveling abroad, except those exempted by law such as overseas Filipino workers (OFWs) and diplomats. It was introduced in the 1970s and remains in force through a series of legislative acts, including the Tourism Board Law, Higher Education Act, and the Tourism Act of 2009.

Under existing rates, travelers departing the Philippines pay between ₱1,620 and ₱2,700 for economy to first-class passage. Reduced rates apply for certain groups: ₱810 to ₱1,350 for dependents of OFWs and ₱300 to ₱400 for privileged categories such as students or those on special government missions.

The collected funds are divided among several institutions:

• 50% to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) for tourism development;
• 40% to the Commission on Higher Education (CHED);
• 10% to the National Commission for Culture and the Arts (NCCA).

The Case for Abolition
Tulfo’s proposed bill seeks to repeal these long-standing provisions, arguing that the responsibility for tourism, education, and cultural funding should lie with the national government—not the traveling public.

“Strengthening tourism programs and infrastructure should not be shifted to taxpayers who already contribute substantially through various forms of taxation,” the bill states.

If passed, the measure will reallocate the funding for TIEZA, CHED, and NCCA from their existing budgets and ensure that future appropriations for these agencies are included in the annual General Appropriations Act (GAA).

Impact on Filipino Travellers
The proposal has been welcomed by many frequent travelers and tourism stakeholders who view the travel tax as an additional financial hurdle. For average Filipinos, especially families and migrant workers, the tax can significantly increase the cost of international travel.

Abolishing the levy could lead to cheaper airfares and make foreign travel more affordable, particularly for those traveling for education, family reunions, and business opportunities. It is also expected to boost outbound tourism, which had declined during the pandemic and has been slow to recover compared to regional neighbors.

Tulfo believes that eliminating the tax will not only ease the financial burden on travelers but also stimulate greater tourism exchange, benefiting both outbound and inbound sectors. “If we really want to improve the country’s tourism sector and be at par with our neighboring Southeast Asian countries, we have to remove these barriers that disempower Filipinos to travel,” he said.

Potential Benefits for Tourism and the Economy
Industry experts note that the proposal could have a broader economic impact. Lowering the cost of travel may encourage more Filipinos to explore destinations within the ASEAN region, which could, in turn, drive airline competition, increase tourism spending, and strengthen international connectivity.

Travel agencies have expressed cautious optimism, noting that the abolition could encourage more Filipinos to book international trips, while also promoting inbound tourism as travel becomes more seamless.

According to tourism analyst Rico Fernandez, “Removing the travel tax will make the Philippines more competitive as a travel hub. It simplifies pricing structures and removes confusion for passengers who often don’t understand why they’re paying extra beyond airport fees.”

Funding Concerns and Opposition
However, the proposal has also drawn some criticism from those concerned about the loss of revenue for tourism, education, and cultural programs. The travel tax currently generates hundreds of millions of pesos annually, funding infrastructure projects, scholarships, and cultural preservation initiatives.

Opponents argue that without this dedicated revenue stream, agencies like CHED and NCCA might face funding shortfalls. In response, Tulfo’s bill specifies that the Department of Tourism (DOT) and related agencies will receive necessary appropriations directly from the national budget to ensure continuity of these programs.

Fiscal policy experts emphasize the need for accountability and transparency in how future budgets compensate for the loss of the travel tax revenue.

Regional Context: How the Philippines Compares
Tulfo’s proposal mirrors trends in other Southeast Asian countries that have moved toward simplified travel taxes or eliminated them altogether to promote mobility. Nations such as Thailand, Malaysia, and Indonesia have streamlined travel-related fees to boost tourism competitiveness and attract more visitors post-pandemic.

By removing the travel tax, the Philippines could align more closely with these practices, positioning itself as a more traveler-friendly destination both for citizens and international tourists.

A Step Toward Inclusive Travel

The potential abolition of the travel tax suggests flexibility and freedom to travel for the clients the young travelers and families. This shows that travel is less of a luxury, and more of a business, educational and cultural opportunity that can be idealized.

Travel tax abolishment, if set to be in law as expected with the passing of Senate Bill No. 1409, will position the Philippines to a set of countries that provide travel as a right, and as an added profit to their economically developing countries. This is a huge difference in policy as for the first time, tax payers, and not the travelers, will be funding tourism in the Philippines.

The tourism, as expected, will shift to a more demand-side policy, where policy sponsors will be driven by profit maximization and indenture contribution. This bill will profit greatly with exposure as the current social and economic structure of the country will position to provide as a fully open country with the most tourism potential.