Erwin Tulfo seeks abolishment of travel tax
Senator Erwin Tulfo has filed a bill seeking to abolish the travel tax, saying it hinders the public’s right to travel.
“This measure represents a concrete step toward ensuring that travel becomes more equitable, accessible, and reasonably priced for Filipinos,” according to the explanatory note of Senate Bill No. 1409.
The bill aims to repeal various laws, which the current collection of the travel tax is based on, such as the Tourism Board Law, which allots 50% of the collections to the Tourism Infrastructure and Enterprise Zone Authority Board of Travel and Tourist; the Higher Education Act, which allocates 40% of the revenue to the Commission on Higher Education; and the Tourism Act of 2009, which allots 10% of the collections to the National Commission for Culture and the Arts.
The travel tax rates for economy to first-class passage currently range from P1,620 to P2,700. Standard reduced rates are P810 to P1,350, and privileged reduced rates for dependents of overseas Filipino workers are P300 to P400.
“Likewise, the responsibility of strengthening tourism programs and infrastructure rests with the national government and should not be shifted to taxpayers, who already contribute substantially through various forms of taxation,” the bill added.
If enacted into law, the money needed to fund the programs supported by travel tax collections (like tourism, education, and culture) will first be taken from the current budgets of the Department of Tourism (for TIEZA), CHED, and NCCA. In the future, the necessary amounts will be included in the annual national budget (General Appropriations Act or GAA).
In a statement, Tulfo said: “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.” — Vince Angelo Ferreras/BM, GMA Integrated News