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Tulfo proposes exemption of travel tax for economy class passengers

Senator Raffy Tulfo suggested that only first-class and business-class passengers should be required to pay the travel tax, proposing that economy-class passengers be exempt from the charge.

Tulfo, who chairs the Senate Committee on Public Services, expressed his stance saying, “For me, the travel tax should only be charged to those flying first class or business class.

“Economy class passengers should not be charged this tax,” he added.

Robert Lim, Undersecretary for Aviation and Airports at the Department of Transportation (DOTr), clarified that the travel tax is imposed by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) under the Department of Tourism (DOT), not the DOTr.

He further explained that there have been previous attempts to eliminate the tax and instead fund TIEZA through the national budget. Lim added that TIEZA, funded by the travel tax, supports tourism and transport projects, including airport development, which benefits the DOTr.

The travel tax, as outlined by the TIEZA website, is a fee levied on individuals leaving the Philippines, regardless of where the air ticket is purchased.

A portion of the proceeds supports education programs by the Commission on Higher Education (CHED) and cultural projects by the National Commission for Culture and the Arts (NCCA).

While Tulfo criticized the tax as a barrier to travel, Lim acknowledged it as an outdated measure.

Tulfo suggested that TIEZA could instead rely on the national budget for its funding, or alternatively, collect travel taxes only from first and business-class passengers. Currently, the full travel tax rate stands at P2,700 for first-class passengers and P1,620 for economy class.

Staff Report

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