If you are a Filipino traveler paying at least PHP300 travel tax, a new proposed bill might save you money the next time you fly abroad.
Senate Bill 76 authored by Sen. Aquilino Pimentel III is seeking to abolish travel tax, which he referred to it as unconstitutional, according to a report of the Philippines Star.
“This right [of Filipinos] to travel shall not be impaired except in the interest of national security, public safety, or public health, as may be provided by law,” said Pimentel, citing Article III, Section 6 of the 1987 Philippine Constitution.
“Today, the travel tax is a levy imposed by the Philippine government on individuals who are leaving the country irrespective of the place where the air ticket is issued and the form or place of payment, as provided for by Presidential Decree 1183 as amended,” he added.
The senator said that the Presidential Decree was espoused by the government before the formulation of the 1987 Constitution.
Meanwhile, the bill also wants to exempt citizens of member-states of the Association of Southeast Asian Nations (ASEAN) from travel tax—which is provided under the 2002 ASEAN Tourism Agreement.
Currently, the full travel tax for Filipinos traveling abroad is PHP1,620 for passengers on economy class plane tickets and PHP2,700 when flying first class.
OFW dependents are given privileged reduced travel tax, priced at PHP300 for passengers on economy class plane tickets and PHP300 when flying first class.
“Filipinos are already paying a huge portion of their income to the national government via the income tax, not to mention the substantial amounts taken by indirect taxes like the VAT,” said Pimentel.
WHO MAY BE EXEMPTED FROM PAYING THE TRAVEL TAX?
The following Filipino citizens are exempted from the payment of travel tax pursuant to Sec. 2 of PD 1183, as amended:
1 Overseas Filipino workers
2 Filipino permanent residents abroad whose stay in the Philippines is less than one year
3 Infants (2 years and below)
REQUIREMENTS FOR REDUCED TRAVEL TAX FOR OFW DEPENDENTS
