MANILA, Philippines — In a landmark move for the Philippine travel industry, the House of Representatives has officially approved House Bill No. 8464, also known as the “Travel Tax Abolition Act,” on its third and final reading. With an overwhelming 257 affirmative votes, the bill now moves to the Senate, bringing the country one step closer to eliminating the decades-old levy that has long been a point of contention for both leisure and business travelers.
The bill, which was consolidated from several measures including one filed by House Majority Leader Ferdinand Alexander “Sandro” Marcos, seeks to repeal the travel tax originally imposed under Presidential Decree No. 1183 and the Tourism Act of 2009. Proponents argue that the tax is an “outdated burden” that disproportionately affects the middle class and youth, especially at a time when regional mobility is key to economic recovery.
“The travel tax belongs to a different era when flying was seen as a privilege for the opulent few,” Rep. Sandro Marcos said in a statement. “Today, it has become an added cost that restricts mobility and weighs heavily on ordinary Filipinos who travel for work, family, or opportunity.”
Key provisions of the approved bill include:
- Immediate Scrapping of Fees: Once enacted, the government will stop collecting the ₱1,620 fee for economy class and ₱2,700 for first-class passengers.
- Proactive Refunds: The bill includes a provision for a “mandatory refund” for passengers who have already paid the tax for flights scheduled on or after the law’s effectivity date.
- Alternative Funding: To protect the agencies that currently rely on travel tax revenue—the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and the National Commission for Culture and the Arts (NCCA)—the bill mandates that their budgets be sourced directly from the General Appropriations Act (GAA).
- ASEAN Integration: The move aligns the Philippines with the ASEAN Tourism Agreement, which encourages member states to eliminate travel-related levies to boost regional tourism and competitiveness.
The Commission on Higher Education had previously raised concerns about the “funding vacuum” the abolition might create, as travel tax collections currently account for over 80% of the Higher Education Development Fund. However, House leaders assured that the Department of Budget and Management (DBM) and the Department of Finance (DOF) have committed to bridging this gap through the national budget to ensure that scholarships and tourism education programs remain uninterrupted.
Market analysts and tourism stakeholders have hailed the House approval as a “win for the common traveler.” By lowering the barrier to international travel, the measure is expected to stimulate passenger volume and generate positive “spillover effects” for the broader economy, from aviation to retail.
The focus now shifts to the Senate, where counterpart bills filed by Senators Francis Pangilinan and Juan Miguel Zubiri are awaiting deliberation. If passed and signed by the President, the abolition of the travel tax would mark one of the most significant reforms in Philippine civil aviation history in nearly 50 years.