SENATOR Alan Peter Cayetano has filed a bill seeking to abolish the Philippine travel tax, arguing that it would make travel more accessible for Filipinos, ease financial burdens, boost tourism and strengthen ties within the Association of Southeast Asian Nations (Asean).
Senate Bill 424, filed on July 10, 2025, seeks to remove the tax imposed under Presidential Decree (PD) 1183, which was signed nearly five decades ago.
“All Filipinos, especially senior citizens and disabilities, must be able to travel freely, without any form of hindrance. This is a right guaranteed by the Constitution,” Cayetano stated in his measure. He described the current travel tax as “outdated and no longer aligned with current economic and regional goals.”
Cayetano’s bill earned the support from travel enthusiasts such as blogger Sinjin Pineda.
“As a frequent traveler, I fully support the bill to scrap the travel tax. It’s a much-needed move that can ease the financial burden on Filipino travelers and encourage more people to explore Asean and beyond. Travel should be more accessible, not more expensive,” he said.
The travel tax is a levy charged by the Philippine Government on all individuals leaving the country, as mandated by PD 1183. Under Republic Act 9593, 50 percent of the tax goes to Tieza, 40 percent to Commission on Higher Education for tourism education and 10 percent to the National Commission for Culture and Arts.
Travel tax for first-class passengers is P2,700, while economy-class travelers are charged P1,620. The reduced rates are P1,350 for first class and P810 for economy. Dependents of overseas Filipino workers pay a special rate of P400 for first class and P300 for economy.
To support regional cooperation, the bill also proposes exempting Asean nationals from the travel tax. This aligns with the Philippines’ commitment under the Asean Tourism Agreement of 2002, which calls for phasing out travel levies among member states.
Cayetano cited a local airline study estimating that while the government may lose around P4 billion in revenue from the tax removal, the economy could gain as much as P299 billion through increased tourism and spending.
“By abolishing the travel tax, we inch closer towards realizing the freedom of movement that our fundamental law envisions for every citizen,” he said.
The senator also pointed to Memorandum Order 29 (2023), which exempts travelers departing from international airports in Mindanao and Palawan bound for the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area from the travel tax until June 30, 2028, as an existing precedent.
Data from the Department of Tourism showed 2.4 million outbound Filipinos from January to April 2025. Top five destinations include were Hong Kong (316,239), Japan (290,698), Singapore (233,856 ), Taiwan (184,690), United Arab Emirates (154,317), Thailand (150,183), Saudi Arabia (141,537), USA (108,068), Vietnam (103,809) and South Korea (80,123). / KOC