Senator Villanueva supports calls to abolish travel tax

Senator Joel Villanueva expressed support for the growing calls to abolish the travel tax, saying the policy has long outlived its purpose and now restricts mobility based on Filipinos’ financial capacity.

Villanueva expressed optimism that the proposal would gain traction in both chambers of Congress after President Ferdinand R. Marcos Jr. included the abolition of the travel tax in the administration’s list of priority bills during the recently concluded Legislative-Executive Development Advisory Council (LEDAC) meeting.

As an initial step toward scrapping the levy, Villanueva earlier filed Senate Bill No. 1529, which seeks to remove the imposition of travel tax on Filipinos and nationals of ASEAN member states departing from the Philippines and traveling within the regional bloc.

“The travel tax was created at a time when international travel was a luxury and there was a need to generate additional revenues to fund tourism-related projects. Today, travel is a necessity for work, education, and trade, among others,” Villanueva said. “We can fund tourism projects without penalizing travelers at the airport.”

“Lowering the cost of travel stimulates demand, creates jobs and expands the tax base,” he continued. “Public policy must evolve with economic reality. The time is ripe for the removal of the travel tax because it is an outdated burden, and this policy shift positions our country as an open and connected economy in the region.”

Villanueva noted that the travel tax has increasingly become a regressive policy, placing a heavier burden on lower- and middle-income Filipinos.

He cited that a family of four planning to travel abroad would need to pay ₱6,480 in travel tax, as the current levy for economy-class passengers stands at ₱1,620, “which is a significant amount for lower-income households.”

“This is money that could be better used for other necessities or reinvested in the local economy,” the lawmaker said. “With millions of Filipinos traveling abroad every year, this fee can add significant costs to international travel, particularly for those who wish to engage in tourism, pursue educational opportunities, or visit family members overseas.”

Villanueva also stressed that, as a member state of the Association of Southeast Asian Nations (ASEAN), the Philippines is bound to comply with the ASEAN Tourism Agreement signed in 2002, which calls for the gradual removal of travel levies and taxes on nationals of ASEAN countries traveling within the region.

“By maintaining the travel tax, the Philippines is failing to fully comply with the agreement, which aims to promote regional integration and ease of travel,” he said.

-Paraluman News