Philippine Senate Bill Proposes Abolition Of Travel Tax: Now The Country Hopes To See New Boost In Tourism

Saturday, July 19, 2025

The Philippine Senate is discussing a connection that could yet assistance nan recreation taxation system, and critics opportunity it’s outdated and hampers nan maturation of nan country’s tourism sector. Filed by Sen. Alan Peter Cayetano, nan measure seeks to push betterment successful nan country’s recreation policies by removing 1 of nan barriers of nan visa-free entree for some a Filipino and a overseas national.

”It is astir clip we do distant with, aliases astatine slightest review, nan recreation taxation nan state has enforced for almost 50 years and relieve nan nagging rumor surrounding double taxation,” says Senator Cayetano, nan measure author. Presidential Decree 1183 The aforesaid recreation taxation has been instituted to make backing for infrastructure improvement and attraction for tourism and to beforehand nan country’s taste heritage. But nan taxation nary longer fits nan country’s existent economical objectives and location tourism benefits, Cayetano says.

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A proponent of nan measurement said that scrapping nan recreation taxation would beryllium a large changeable successful nan limb for nan Philippine economy. He stressed that specified a move will not only make nan little fees cheaper for Filipino passengers, but it will besides springiness a changeable successful nan limb to tourism successful nan country, wherever nan attraction has been downgraded by antagonistic publicity successful caller years.

Increasing overseas visits “Many see nan recreation taxation arsenic a useless hurdle that tin some pave nan measurement for much overseas visits and home R&R successful nan country,” he added. He besides said that though nan authorities could beryllium losing P4B aliases truthful per twelvemonth from forgone recreation tax, nan revenues from a imaginable turnaround successful economical fortunes from tourism tin much than dress up for mislaid recreation tax. According to studies cited connected Cayetano’s website, nan Philippine system tin gain little because moreover much visitors would beryllium dissuaded from walking by nan tax.

The taxation has agelong been considered a stumbling artifact for recreation astir nan country, whether for Filipinos aliases overseas nationals. In nan progressively globalized world wherever millions of travelers are hopping from 1 state to different and nan recreation taxation serves arsenic a disincentive to tourists, nan Philippines is losing its spot to overseas competitors connected nan database of nan world tourism destination carriers.

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A singular proviso of this rule is to guarantee a free-for-all nationalist stash for each Filipinos, much specifically nan aged and PWD, crossed nan onshore without immoderate economical obstacle successful nan way! The existing recreation taxation includes a wide scope of travelers, yet for Cayetano, nary Philippine national successful immoderate economical aliases wellness information should beryllium penalized for walking wrong nan Philippines aliases to a overseas country. Ending this shape of a taxation will let everyone to savor their mobility and summation from world connectivity.

The bill, likewise, upholds nan Constitution of nan Philippines, which acknowledges its citizens’ correct to recreation locally and abroad. “At a clip erstwhile nan state is moving a measurement person to enjoying nan state enshrined successful nan Bill of Rights of nan basal rule of nan onshore and confirming that nan state to recreation should not beryllium constricted by financial constraint, your House of Representatives believes that it is worthy to subordinate Congress to guarantee a successful implementation of nan country’s FTA and tourism improvement schedule by repealing nan difficult-to-implement recreation tax,” said Cayetano.

Commitment to ASEAN Tourism Agreement

This is different absorbing facet of nan projected measurement vis-a-vis nan Philippines’ responsibilities nether nan 2002 ASEAN Tourism Agreement. The statement says that location will beryllium a phased simplification of nan recreation taxation crossed ASEAN, portion of efforts to soft recreation wrong Southeast Asia and stimulate tourism successful nan region.

If nan Travel Tax Bill is passed, ASEAN citizens will nary longer beryllium nether nan recreation tax, and it will thief nan state successful complying pinch nan ASEAN treaties it has signed and beforehand nan state arsenic a location tourism hub. This will put nan Philippines connected par pinch its neighbors, who person already done distant pinch recreation taxation to lure much tourists.

Broader Repercussions connected Philippine Tourism

Tourism is simply a cardinal constituent of nan Philippine economy, which has nan imaginable to do much pinch nan correct policies successful place. Prior to nan world pandemic that arrived present successful 2019, tourism had been 1 of this country’s astir influential maturation industries, pouring billions of dollars into nan system and creating millions of jobs. But nan manufacture has been slower to return to wellness aft nan pandemic than immoderate Southeast Asian neighbors, and immoderate person already moved toward scrapping recreation taxes to entice travelers.

It will put nan Philippines successful a much competitory position to pull visitors worldwide, enticing much section and overseas visitors to make nan Philippines a jetsetter destination of each choice. The action whitethorn besides spur nan Philippines to go a much budget-friendly destination, moreover for visitors from overseas seeking an affordable yet breathtaking vacation action successful nan region.

What Happens Next for nan Travel Tax Bill?

The measure is successful its early stages of information successful nan Senate and is apt to beryllium revised done respective drafts and rounds of statement earlier it is passed. While nan measure has nan support of many, including tourism advocates, it besides seems to beryllium poised to look flak connected nan premise of perchance losing P4 cardinal successful revenues that impact basal services.

But arsenic reviving nan tourer waste and acquisition has risen up nan ranks of nan country’s priorities, experts are saying that ditching nan recreation taxation could beryllium a high-margin, semipermanent triumph for nan manufacture that could extremity up dwarfing nan short-term taxation hit.

While lawmakers reason nan case, others will beryllium watching whether nan Philippine authorities tin onslaught nan correct equilibrium betwixt chasing taxation and interest revenue, connected nan 1 hand, and processing a much inclusive and resilient tourism manufacture pinch greater community-wide benefits connected nan other.