THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. NO. 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Tourism industry in the Philippines plays a significant role in the country's 
economy. It generates revenues that can be used by the government for other 
development purposes. In 1997, TOURISM CONTRIBUTED 8.7% to the country's 
GDP. In thqt same year, the industry generated 2.3 million jobs or one in every nine 
jobs, nationwide. Having this in mind, we can see the importance that tourism plays in 
our economy. 
There is a problem though for funds for the implementation of the programs and 
projects of the Philippine Tourism Authority are inadequate considering the policy of the 
present administration to promote the Philippines as a tourist and investment haven in 
Asia. There is a pressing need to increase our tourism budget if we are to make 
improvement in our tourism industry. 
The bill seeks to allocate the entire collection of the travel tax to the Philippine 
Tourism Authority in order to ensure that the continuing programs and special projects 
are adequately addressed. 
The bill also provides the mechanism for the effective collection of the travel tax 
to minimize tax avoidance. 
EJERCITO ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
I 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
ALLOCATING THE COLLECTIONS FROM THE TRAVEL TAX TO THE 
PHILIPPINE TOURISM AUTHORITY, AMENDING THEREBY PRESIDENTIAL 
DECREE NO. 1183, AS AMENDED, AND REPUBLIC ACT NO. 7722, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of representatives of the Philippines in 
Congress assembled. 
SECTION I. Title - This Act shall be cited as the “TRAVEL TAX REFORM ACT 
OF 2004. 
SECTION 2. Sfate Policy. - The State shalt provide adequate funds for the 
promotion, encouragement and development of Philippine Tourism domestically and 
internationally. 
SECTION 3. Allocation of Travel fax Collecfions fo fhe Philippine Tourism 
Authority. - Pursuant to the aforecited state policy, all proceeds of the travel tax shall 
be utilized exclusively for the tourism projects of the Philippine Tourism Authority (PTA). 
SECTION 4. - Agencies Authorized to Collect the Travel Tax. - All carriers or 
their authorized agents issuing passenger tickets shall collect the travel tax thereon, 
except as provided under Section 5 of the Act. This shall include carriers that engage in 
the transport of passengers through chartered flights or shipping agreements although 
non-tickets are issued in connection therewith. 
In case of travel involving non- commercial carriers, the charter, or the owner of 
the private aircraft or vessel shall be responsible for the collection of travel tax due. 
SECTION 15. - Foreign- Issued Tickefs - In cases where tickets were issued 
and/or purchased abroad are taxable under P.D. no. 1183, as amended, the travel tax 
shall be paid directly to the PTA prior to the departure of the passenger from the 
Philippines and shall not be collected abroad by the carriers or their duly authorized 
agents. Carriers or their duly authorized agents shall not validate the bookings or 
reservations of the passengeds holding foreign- issued tickets unless payment of the 
travel tax has been made to the PTA or that a Travel Tax Exemption Certificate (PTA 
Form 354) from the PTA has been submitted. 


SECTION 6. - Remittance of Travel Tax Collections and Submission of 
Reports. - Travel tax collections shall be remitted by the carriers and other authorized 
collecting agents directly to the PTA in the following manner: 
(1) Collection for the first 15 days of the month shall be remitted not later 
The 1 gfh day of the succeeding month; 
(2) Collections from the 16'h day to the end of the month shall be 
Remitted not later than the 30fh day of the succeeding month. 
Travel taxes collected by the charterers or owners of non- commercial 
carriershessels shall be remitted to the PTA not later than fifteen (15) days after the 
completion of the flight or voyage engagement. 
The PTA shall remit collections from the travel tax to the Bureau of the Treasury 
on a quarterly basis. The needs of the PTA shall be funded through the usual budgetary 
fund release mechanism, which shall be done on an annual basis for the current 
operating expenditures, and on a case to case basis for special projects and capital 
out lays. 
SECTION 7. - Travel Tax Exemption. - No travel tax exemption shall be issued 
without the authority and approval of the General Manager of the PTA, or his duly 
authorized representative. 
SECTION 8. - Refund of fhe Travel Tax. - No travel tax shall be refunded 
without the authority and approval of the General Manager of the PTA or his duly 
authorized representative. However, authorized collecting agents may refund collected 
travel tax only when there is a cancellation of tickets, chartered flights or voyage 
ag reeme n ts. 
SECTION 9. - Rules and Regulations. - The General manager of the PTA, in 
coordination with the Secretary of Finance, shall, within sixty (60) days from the 
approval of this Act, promulgate the necessary rules and regulations for the effective 
implementation of its provisions. 
SECTION I O .  Civil Remedies. - The civil remedies for the collection of travel 
tax, fees, interest, surcharges or other increments thereto resulting from non- collection, 
non- remittance and delinquency shall be; 
a) By distraint of goods, chattel or effects, and other personal property of 
whatever nature and character, including interest in and rights to personal 
property, and by levy upon real property and interest in or rights to real 
property; and 
b) By civil and criminal action. 
I 
Either of these remedies or both simultaneously may be pursued by the 
PTA, Provided, that these remedies shall not be availed of where the amount of travel 
tax involved is not more than ONE THOUSAND PESOS (PHP 1,000.00). 
The PTA shall advance the amount needed to defray the costs of collection by 
means of these remedies, including the preservation or transportation of personal 
properties distrained, as well as real property, including the improvement thereon. 


'll. 
Constructive Distraint of Property of the Collecting Agent. - In 
order to safeguard the interest of the Government, the General Manager of the PTA, 
may place under constructive distraint the property of the delinquent collecting agent, 
upon showing of prima facia evidence, that said collecting agent is retiring from any 
business, or is intending to leave the country or remove his property therefrom or to 
hide or conceal his property or to perform any act tending to obstruct the collection of 
hide or conceal his property or to perform any act tending to obstruct the collection of 
the travel tax. 
The constructive distraint of property shall be effected by requiring the collecting 
agent or any person having possession or control of such property to sign a receipt 
covering the property, and obligate himself tom preserve the same unaltered, and not to 
dispose the same in any manner without the express authority of the General Manager 
of the PTA. 
SECTION 12. Summary Civil Remedies. - 
(A) Distraint of Personal Property- Upon the failure of the collecting agents to 
collect and remit the travel tax at the time required, the General manager of the PTA or 
his duly authorized representative, if the amount involved is in excess of FIVE 
HUNDRED THOUSAND PESOS (PHP 500,000.00), 
shall seize and distraint any 
goods, chattels, or effects, and other personal property of such collecting agents in 
sufficient quantity to satisfy the delinquent travel tax or charges, together with any other 
surcharges and increments thereto incident to the delinquency , and the expenses 
incurred in the distraint and to the cost of the subsequent sale. A written report shall be 
made authorized distraining officer to the General Manager of PTA. 
(B) Levy on real Estate Property- Upon the expiration required by law to pay the 
delinquent travel tax, real property may be levied upon before, simultaneously or after 
the distraint or personal property belonging to the delinquent collecting agent. The 
authorized officer duly designated by the General Manager of the PTA shall prepare an 
authenticated certificate showing the name of the delinquent collecting agent and the 
amount of the unpaid travel tax, charges, surcharges, and all other increments thereto. 
Said certificate shall operate with the force of legal execution throughout the country. 
Levy on real estate property shall be effected by (I) 
writing upon said certificate a 
description of the real estate property; (2) the corresponding written notice to the 
register of Dqeds of the province or city. Levy shall be effected upqn the delinquent 
collecting agent or, if he be absent from the country, to the agent or manager of the 
business from which the travel liability arose. In absence of an agent or manager, levy 
shall be effected upon present occupant of the real estate property. 
Within ten (IO) working days after receipt of the levy on real estate property, the 
levying office'r duly designated by the General Manager of the PTA shall render a 
written repod of said levy. The General manager shall have the power to lift the 
warrants of levy on real estate property. 
SECTION 13. Sale of the Personal Propedy Disfrained and Disposition of 
Proceeds. - The distraining officer duly designated by the General Manager of the PTA 
shall cause a notification to be exhibited in not less than two (2) public places in the 
municipality, province or city where the distraint is made. The notification shall specify 
the time and place of sale and the articles distrained. The time of sale shall not be less 
than fifteen (15) days after notice to the owner or possessor of the property above 


specified. The publication or posting of such notice is indispensable, including a notice 
to the office of the mayor of the municipality or city where the property distrained is 
located. 
At the time and place fixed in such notice the said distraining officer shall sell the 
goods, chattels, or effects, or other personal properties, at the public auction, to the 
highest bidder for cash. Any excess over and above what is required to pay the entire 
delinquent travel tax, charges and other increments, including expenses actually 
incurred in the seizure and preservation of said property pending the public auction shall 
be returned to the owner of the personal property sold. No additional charges shall 
imposed for the services of the distraining officer: Provided, however, that if all the 
delinquent travel taxes, charges and other increments are fully paid prior to the public 
auction to the distraining officer, the goods, chattel and personal property distrained 
shall be restored to the owner. 
SECTION 14. Purchase by the Government at Public Auction. - When the 
amount bid for the property under distraint is not equal to the total amount of the 
delinquent taxes and other related charges or is very much less than the market value 
of the properties offered for public auction, the General manager of the PTA or his duly 
authorize representative may purchase the same in behalf of the Government for the 
amount of the delinquent travel taxes, penalties, charges and costs due thereon. The 
General Manager of the PTA may resell properties so purchased by the Government. 
SECTION 15. - Public and Sale. - After fifteen (15) days upon levy on the real 
property, the levying officer shall proceed with the publication of said property for sale to 
satisfy the claim for delinquent taxes, charges and other increments and cost of the 
sale. Such publication advertisement shall cover a period of at least thirty (30) days. 
Such publication shall be made by: (1) posting a notice at the main entrance of the 
municipal hall building or city hall and in public and conspicuous place in the barangay 
where the real property is situated; and by, (2) publication once a week for three (3) 
consecutive weeks in a newspaper of general circulation in the municipality or city 
where the subject real property is located. At any time before the auction, the owner of 
the said real property may pay the levying officer for the delinquent travel taxes, 
charges, including all related charges. The said levy will be lifted in favor of the owner 
charges, including all related charges. The said levy will be lifted in favor of the owner 
of the real property and the proceedings shall be determined, restoring all the rights 
over the real property to the said owner thereof. Otherwise the public auction of said 
real property shall continue. 
Within five (5) days after the consummation of the public sale, the levying officer 
shall render a written report to the General Manager of the PTA regarding the 
proceedings conducted. The levyirlg officer shall make out and deliver to he purchaser a 
certificate from his records showing the proceedings of the sale, describing the real 
property sold, the name of the purchaser and setting out the interests: Provided, 
however, that in case of excess, the same shall be turned over to the owner of the real 
property. 
SECTION 16. Redemption of Real Properfy Sold. - Within one (1) year 
from the date of the public sale, the owner shall have the right to pay the PTA the 
amount of the delinquent travel taxes, charges, penalties, interest and other increments 
related thereto and the interest thereon from the date of the delinquency to the date of 
the public sale, together with the interest on said purchase price at the rate of twenty 
(20) percent per annum from the date of purchase to the date of redemption. Such 
payment shall entitle the owner to the delivery of the certificate issued to the purchaser 


and a certificate from the PTA that he has thus redeemed the property. The PTA shall 
forthwith pay to the purchaser the amount by which such property has been redeemed, 
and said property shall be free from the lien of such delinquent travel taxes, charges, 
interest and other penalties. Provided, further, that the owner shall not be deprived of 
possession of said property from the time of the public sale to the time of the 
redemption and shall be entitled to the rents and other income derived thereof until the 
expiration of the time allowed for its redemption. 
SECTION Iir.For$eiture fo the Government. - If there is no bidder to the public 
sale or bid price is insufficient to pay the delinquent travel taxes, penalties and other 
costs, the officer conducting the public auction shall declare the real property forfeited to 
the Government in satisfaction of the claims over said real property. Within two (2) days, 
the officer shall make a written report to the General Manager of the PTA of the 
proceedings conducted. It shall be the duty of Deeds concerned, upon registration 
before the his office of any such declaration of forfeiture, to transfer the title of the 
subject real property forfeited to the Government, without necessity of an order from a 
competent court. 
Within one (I) 
year from the date of such forfeiture, the owner may redeem said 
property by paying the PTA the full amount of the delinquent travel taxes, charges, 
interest, other increments, and penalties together with interest thereon and the cost of 
sale. However, if the property after the expiration of the herein period thus failed to 
redeem, the forfeiture shall be absolute. 
SECTION 18. - Repetition of Remedies. - The civil remedies for distrait of 
personal and levy on real property may be repealed if necessary until the full 
satisfaction of the delinquent travel taxes, charges, and other increments, interest and 
penalties, is collected. 
SECTION 19. Other Provisional Remedies Not Available. - No court of 
competent jurisdiction has the authority to grant an injunction, restraining order or other 
provisional remedies, to restrain the collection of travel taxes, related charges, interest, 
and penalties. 
SECTION 20. - Reportorial Requirement. - The General Manager of the PTA 
shall submit to the Congress a quarterly report of the amount of collections and the 
respective projects financed by the proceeds from the travel tax. 
SECTION 21. - Repeaiing Clause. - Subparagraph 3 of paragraph of Section 
I O  of Republic Act No. 7722, otherwise known as the Higher Education Act of 1994 is 
hereby specifically repealed, and all laws, presidential decrees, executive orders, rules 
and regulations or parts thereof which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SECTION 22. - Separability Clause. - If any part or provision of these Act shall 
be held unconstitutional or invalid, other provisions hereof which are not affected 
thereby shall continue to be in full force and effect. 
SECTION 23. Effectivity. - This Act shall take effect fifteen days after the 
completion of its publication in a newspaper of general circulation or in the Official 
Gazette, whichever comes first. 
Approved,