SEVENTEENTH CONGRESS OF THE ) ae
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

“18 KAY 30 iV
SENATE

S.B.No._ 1841 +f —

Introduced by Senator Aquilino “Koko” Pimentel III

AN ACT
ABOLISHING THE TRAVEL TAX

EXPLANATORY NOTE

A Filipino’s right to travel abroad is burdened with the imposition
of a travel tax in the following amounts:

First Class Economy Class

Passage Passage
Full Travel Tax P2,700.00 P1,620.00
Standard Reduced Travel P1,350.00 P810.00
Tax
Privileged Reduced Travel P400.00 P300.00
Tax for a Dependent of an
Overseas Filipino Worker

The travel tax was originally imposed to curtail unnecessary
foreign travels and to conserve foreign exchange. Subsequently, the
travel. tax was used to generate much needed funds for tourism-related
programs and projects especially for the development and maintenance
of tourism facilities and infrastructure to enhance the country’s
competitiveness as a major tourist destination.

The undersigned believes that the national government should not
shift the burden of improving our substantially inadequate tourism
facilities and infrastructure to the regular traveling Filipinos, who are
already paying a huge chunk of their salary to the national government
via income tax. They should not be made to pay for the failure of the
national government to provide state of the art tourism facilities and
infrastructure.


Moreover, on November 4, 2002, the ASEAN Tourism Agreement
was signed with the Philippines as one of the signatories. Article 2(3) on
Facilitation of Intra-ASEAN and International Travel of the said
agreement provides for the removal of travel levies and travel taxes on
nationals of ASEAN Member States traveling to other ASEAN Member
States. It has been almost fourteen years since the Philippines signed the
ASEAN Tourism Agreement but, as of date, travel taxes are still imposed
upon individuals traveling to other ASEAN Member States.

Further, this bill intends to not only abolish travel taxes for
individuals traveling to other ASEAN Member States but to totally
remove the imposition of travel tax for individuals who will depart to
any other country around the globe.

Since Section 73 of R.A. No. 9593 provides that the national
government shall look for alternative funding sources for the programs
funded by the travel tax in the event of a phase out of travel tax
collection following international agreements, this bill provides that the
Tourism Infrastructure and Enterprise Zone Authority, which receives
fifty percent (50%) of the proceeds from travel tax collections, the
Higher Education Development Fund under the Commission on Higher
Education (CHED), which receives forty percent (40%) from the total
gross collections of travel tax, and the National Commission for Culture
and the Arts (NCCA), which receives ten percent (10%) share shall now
directly receive the necessary funding from the General Appropriations
Act.

It is also the undersigned’s view that the percentages of travel tax
allocated for CHED, even if the law states that priority should be given
to tourism-related educational programs and courses, and for NCCA are
unnecessary since these are not connected to traveling.

To remove the burden of travel tax to Filipinos, the passage of this
measure is earnestly requested.

ANicdeAg
AQUILINO' “KOKO” PIMENTEL III.



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SEVENTEENTH CONGRESS OF THE) ean thew
REPUBLIC OF THE PHILIPPINES __)

Second Regular Session ) 18 MAY 30 a/
SENATE

Kelsi ve - —
S. B. No. 1841 WA

Introduced by Senator Aquilino “Koko” Pimentel III

AN ACT
ABOLISHING THE TRAVEL TAX

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Repeal. — Provisions of laws relating to the
authority to collect or receive funding from the collection of Travel Tax,
including but not limited to, Republic Act No. 1478, as amended,
Republic Act No. 7356, Republic Act No. 7722, and Republic Act No.
9593, are hereby repealed.

SEC. 2. Effect of Repeal. — The collection of travel taxes will be
prohibited after the effectivity of this Act. For flights that are scheduled
on or after the effectivity of this Act and the travel taxes due were
collected prior to the effectivity of this Act, the travel taxes paid shall be
refunded immediately.

SEC. 3. Appropriations. — The amount necessary for the programs
funded by the travel tax collections and for the implementation of this
Act shall be charged to the respective appropriations under the current

General Appropriations Act (GAA) of the Department of Tourism for


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the Tourism Infrastructure and Enterprise Zone Authority, the
Commission on Higher Education for the Higher Education
Development Fund, and the National Commission for Culture and the
Arts for the National Endowment Fund for Culture and the Arts.
Thereafter, such sums as may be necessary shall be included in the
annual GAA.

SEC. 4. Implementing Rules and Regulations. — Within sixty (60)
days from the promulgation of this Act, the Tourism Infrastructure and
Enterprise Zone Authority shall formulate the implementing rules and
regulations in connection with the immediate refund provided in Section
2 hereof.

SEC. 5. Separability Clause. - Should any provision or part of this
Act be declared unconstitutional, the other provisions or parts not

affected thereby shall remain valid and effective.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in two (2) newspapers of general circulation.

Approved,