The House of Representatives of the Philippines has approved on third and final reading a measure seeking to abolish the country’s long-standing Travel Tax, potentially removing an additional cost that Filipino travelers pay when departing the country.
In a decisive vote of 257-1-1, lawmakers passed House Bill No. 8464, which proposes the removal of the Travel Tax currently imposed on certain passengers leaving the Philippines. If enacted into law, the measure could significantly reduce the total amount paid by travelers when flying abroad and may reshape how tourism-related programs are funded in the country.
However, the bill must still pass through the Senate of the Philippines before it can be signed into law. As of 10 March 2026, the Senate counterpart measure remains under deliberation at the committee level.
What is the Travel Tax?
The Philippine Travel Tax is a departure levy imposed on individuals leaving the country, regardless of where the airline ticket was purchased. The tax is mandated under Presidential Decree No. 1183 and applies primarily to Filipino citizens, foreign permanent residents, and certain long-stay foreign nationals departing the Philippines.
Travelers currently pay PHP1,620 for economy-class departures and PHP2,700 for first-class or business-class departures, although reduced rates and exemptions exist for certain groups such as overseas Filipino workers, infants, and some students studying abroad.
The Travel Tax is usually paid before departure, either through airport counters or via online payment systems managed by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the government agency responsible for administering the levy.
Historical Background of the Travel Tax
The concept of a travel tax in the Philippines dates back to 1956, when it was first introduced through Republic Act No. 1478 as a way to generate funds for national development initiatives linked to tourism and cultural promotion.
The system was later strengthened in 1977 with the issuance of Presidential Decree No. 1183, which standardized the collection of the tax and expanded its coverage. The decree formally defined the Travel Tax as a levy imposed on individuals leaving the country and established the mechanisms for its administration and distribution.
Over the decades, the Travel Tax became a significant funding source for several government programs tied to tourism development and cultural initiatives.
Where Travel Tax Revenues Go?
Funds collected from the travel tax are distributed among several government institutions and programs. Under existing laws and policies, the revenues are typically allocated as follows:
- 50% to the Tourism Infrastructure and Enterprise Zone Authority for tourism-related infrastructure and destination development projects.
- 40% to the Commission on Higher Education to support tourism education and related scholarship programs.
- 10% to the National Commission for Culture and the Arts for cultural preservation and heritage initiatives.
Annual collections from the Travel Tax have been estimated at around PHP8 billion, making it a major source of funding for tourism infrastructure and cultural projects across the country.
These funds have historically been used to finance tourism facilities, destination improvements, and heritage restoration projects, helping local governments develop attractions that support the tourism industry.
Debate Over Abolishing the Tax
Supporters of House Bill No. 8464 argue that eliminating the Travel Tax would make international travel more affordable and align the Philippines with other Southeast Asian countries that no longer impose a similar departure levy.
However, critics have raised concerns about how the government will replace the funding currently generated by the tax, particularly for tourism infrastructure projects and educational programs that depend on the revenue.
With the House approval now secured, attention shifts to the Senate, where lawmakers will decide whether to move forward with the measure. If the Senate passes its version and both chambers reconcile the final bill, the proposal could mark the end of a tax that has been part of the Philippine travel policy for nearly seven decades.