FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by Sen. Loren Legarda 
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 
that 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 arp to make 
improvements in our tourism industry. 
This bill, therefore, seeks to allocate the entire collection of the travel tax to the 
Philippine Tourism Authority in order to ensure that continuing programs and special 
projects are adequately addressed. 
This bill also provides for the mechanism for the effective collection of the travel 
tax to minimize tax avoidance. 
Premises considered, approval of this bill is earnestly recommended. 
Senator 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. 1(196 
Introduced by Sen. Loren Legarda 
AN ACT 
ALLOCATING THE COLLECTIONS FROM THE TRAVEL TAX TO THE 
PHILIPPINE TOURISM AUTHORITY, AMENDING FOR THE PURPOSE 
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 1. Title. - This Act shall be cited as the TRAVEL TAX REFORM ACT 
OF 2007. 
SEC. 2. State Policy. - The State shall provide adequate funds for the promotion, 
growth and development of Philippine tourism domestically and internationally. 
SEC. 3. 
Allocation of Travel Tax Collections to the Philippine I 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). 
SEC. 4. Agencies Authorized to Collect the Travel Tax. -- All carriers or their 
authorized agents issuing international 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 no tickets are issued in connection therewith. 
In case of travel involving non-commercial carriers, the charterer, or the owner of 
the private aircraft or vessel shall be responsible for the collection of the travel tax due. 


SEC. 5. Foreign-issued Tickets. - In cases where tickets were issued and/or 
purchased abroad and 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 passenger/s 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. 
SEC. 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) Collections for the first 15 days of the month shall be remitted not later 
than the 15th day of the succeeding month; 
(2) Collections from the 16th day to the end of the month shall be remitted 
not later than the 30th day of the succeeding month. 
Travel taxes collected by the charterers or owners of non-commercial 
carriers/vessels shall be remitted to the ITA not later than fifteen (15) days after the 
completion of the flight or voyage arrangement. 
The ITA 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 outlays. 
SEC. 7. Travel Tax Exemptions. - No travel tax exemption certificate shall be 
issued without the authority and approval of the General Manager of the PTA, or his 
duly authorized representative. 


SEC. 8. Refund of Travel Tax. - No travel tax shall be refunded without the 
authority and approval of the General Manager of the M'A 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 agreements. 
SEC. 9. Rules and Regulations. - The General Manager of the PTA, in 
coordination with, the Secretary of the Department 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. 
SEC. 10. Civil Remedies. - The civil remedies for the collection of travel tax, 
fees, interest, surcharges or other increments thereto resulting from the non-collection, 
non-remittance and delinquency shall be: 
a) By distraint of goods, chattels 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. 
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 (P1,OOO.OO). 
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 property, including the improvements thereon. 
SEC. 11. 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 facie 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 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 to preserve the same unaltered, and not to 
dispose the same in any manner without the express authority of the General Manager 
of the PTA. 
' SEC. 12. Summary Civil Remedies. - 
(A)Distraint of Perspnal 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 
(P500,000), shall seize and distraint any goods, chattels, or effects and 
the personal property, including any interest and rights to 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 by the authorized distraining officer to 
the General Manager of the PTA. 
,(B)Levy on Real Estate Property. - Upon the expiration of the time 
required by law to pay the delinquent travel tax, real property may be 
levied upon before, simultaneously or after the distraint of 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 (1) writing upon said 
certificate a description of the real estate property; (2) the corresponding 
written notice to the Register of Deeds of the province or city. Levy shall be 
effected upon the delinquent collecting agent or, if he be absent from the 
country, to the agent or manager of the business from which the travel tax 
liability arose. In the absence of an agent or manager, levy shall be effected 
upon the present occupant of the real estate property. 
Within ten (10) working days after receipt of the levy on real estate 
property, the levying officer duly designated by the General Manager of the 
ITA shall render a written report of said levy. The General Manager shall 
have the power to lift the warrants of levy on real estate property, 
SEC. 13. Sale of Personal Property Distrained 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) pviblic 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 be not less than fifteen 
(15) days after notice to the owner or possessor of the property as above specified. The 
publication or posting of such notice is indispensible, 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 chargers 


shall be 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. 
SEC. 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 offeied for public auction, the General Manager of the PTA or his duly 
authorized 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. 
SEC. 15. Publication and Sale. - After fifteen (15) days upon levy on the real 
property, the levying officer shall proceed with publication of said property for sale to 
satisfy the claim for delinquent travel taxes, charges aiid 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 a 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 public auction, 
the owner of 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 of the real property and the proceedings shall be terminated, 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 ETA regarding the 


proceedings conducted. The levying officer shall make out and deliver to the 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. 
SEC. 16. Redemption of Real Property Sold. - Within one (1) year from the date 
of the public sale, the owner shall have the right to pay the ITA the amount of the 
delinquent travel taxes, charges, penalties, interest and other increments related thereto 
and 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 
ITA 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 public sale to the time of redemption and shall be entitled to 
the rents and other income derived thereof until the expiration of the time allowed for 
its redemption. 
., 
SEC. 17. Forfeiture to the Government. - If there is no bidder to the public sale 
ore the 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 ITA of the 
proceedings conducted. It shall be the duty of the Registry of Deeds concerned, upon 
registration before his office of any such declaration of forfeiture, to transfer the title of 
the subject real property forfeited to the Government, without the necessity of an order 
from a competent court. 


Within one (1) 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, 
interests, other increments, and penalties together with interest thereon and the costs of 
sale. However, if the property after the expiration of herein period thus failed to 
redeem, the forfeiture shall be absolute. 
SEC. 18. Repetition of Remedies. - The civil remedies for d.straint of personal 
and levy on real property may be repeated if necessary until the full satisfaction of the 
delinquent travel taxes, charges, other increments, interest and penalties, is collected. 
SEC. 19. Other Provisional Remedies Not Available. - No court of mmpetent 
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. 
SEC. 20. Reportorial Requirement. - The General Manager of the PTA shall 
submit to Congress a quarterly report of the amount of collections and the respective 
projects financed by the proceeds from the travel tax. 
SEC. 21. Repealing Clause. - Subparagraph 3 of paragraph a of Section 10 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. 
SEC. 22. Separability Clause. - If any part or provision of this Act shall be held 
unconstitutional or invalid, the other provisions hereof which are not affected thereby 
shall continue to be in full force and effect. 
SEC.23. Effectivity. - This Act shall take effect fifteen (15) days after the 
completion of its publication in a newspaper of general circulation or in the Official 
Gazette, whichever comes first. 
Approved