Local airlines back abolition of travel tax

The Air Carriers Association of the Philippines (ACAP) is backing the proposed measure abolishing the imposition of tax on Filipinos’ overseas travels.

In a statement on Wednesday, ACAP said it welcomes President Ferdinand “Bongbong” Marcos Jr.’s decision to include the proposed abolition of the travel tax to his administration’s priority list of legislative measures.

“The ACAP member airlines support the reform as a meaningful step toward making international travel more affordable for Filipino passengers and boosting tourism activity,” the local airlines said.

“Removing the travel tax will directly lower the overall cost of international air travel for Filipinos — benefiting individual travelers, families, groups, students, and first-time travelers among others,” the group added.

ACAP also said the proposal is “expected to stimulate passenger demand, enhancing the Philippines’ connectivity and global competitiveness.”

ACAP members include Philippine Airlines, Cebu Pacific, Philippines AirAsia, PAL Express and CebGO.

To recall, House Majority Leader Ferdinand Alexander ''Sandro'' Marcos, son of the President, recently proposed the abolition of the imposition of travel tax for Filipinos travelling abroad for vacation, saying the said levy already outlived its purpose.

House Bill 7443 aims to repeal Presidential Decree (PD) No. 1183 and related provisions of the Tourism Act of 2009 imposing travel tax which currently amounts to P1,620 for economy class travelers and P2,700 for first-class passengers.

Earlier, Tourism Secretary Christina Frasco warned that scrapping the tax without a substitute fund could adversely affect the tourism sector. She explained that 50% of travel tax collections support tourism infrastructure such as tourist rest areas, visitor centers, and jetty ports.

Meanwhile, about 40% of the tax funds tourism education through the Commission on Higher Education; and 10% are allocated for the preservation of heritage structures nationwide. —VAL, GMA Integrated News