TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S. B. No.
424
, . - of .''ic ■ • *' ■' y
25 JULIO P6 -05
\
INTRODUCED BY SENATOR ALAN PETER “COMPANERO” S. CAYETANO
AN ACT
ABOLISHING THE TRAVEL TAX ON FILIPINOS AND ON NATIONALS OF 
ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) MEMBER 
STATES TRAVELLING TO OTHER ASEAN MEMBER STATES
EXPLANATORY NOTE
“And he said to them, “Go into all the world and proclaim the gospel to the whole
creation. ”
- Mark 16:15
All Filipinos, especially senior citizens and persons with disabilities, must be able 
to travel freely, without any form of hindrance. This is a right guaranteed by the 
Constitution. By abolishing the travel tax, we inch closer towards realizing the 
freedom of movement that our fundamental law envisions for every citizen.
Presidential Decree No. 1183 that imposes the collection of travel tax was signed 
nearly five (5) decades ago. Much has changed since then, including the 
substantial growth in government revenue collection from other sources. While we 
recognize the importance of travel tax in funding programs for tourism 
infrastructure, higher education, and culture and arts as provided by Republic Act 
9593 or the Tourism Act of 2009, it is equally important to consider the burden 
already carried by an ordinary Filipino who pays one of the highest rates for income 
tax1 and Value Added Tax2 in Southeast Asia, along with other taxes levied in the 
country. It is high time to give travelers a break and allow for tourism to flourish by 
removing one of the barriers to travel. This would pave the way for us to encourage 
traveling as a form of lifelong learning.
According to a study conducted by an airline in the country, removing the travel 
tax would equate to a PHP 4 Billion loss in government revenues, but could 
generate PHP 299 Billion for the economy due to an increased traveler spending3. 
The only negative impact of this bill is loss of revenue. However, by making travel 
more affordable, it will encourage more people to travel and spend more. In fact, 
many of the infrastructure gains have been driven by increased travel and 
temporary migration of the overseas Filipino workers. Furthermore, since fuel and 
movement of goods are also taxed, there are ways by which the revenue loss can 
be offset. Clearly, the benefits of abolishing travel tax outweigh the temporary loss 
that the government would have to bear.
1 https://www.aseanbriefing.com/news/comparing-tax-rates-across-asean/
2 https://filipinotimes.net/latest-news/2024/10/03/ph-tops-southeast-asia-with-highest-vat-rate-at-12/
3 https://calabarzon.depdev.gov.ph/2023/08/10/calabarzon-sced-supports-the-abolition-of-travel-tax/


We can build upon the momentum set in motion by the signing of Memorandum 
Order No. 29 in 2023. This exempts all travelers by air departing from all 
international airports in Mindanao and Palawan, and who are bound for any 
destination in the Brunei Darussalam -Indonesia-Malaysia-Philippines-East 
ASEAN Growth Area (BIMP-EAGA) from payment of travel tax until 30 June 20284. 
This sets a clear precedent. If such a measure can be implemented in select 
regions, then we can take it a step further by fully abolishing the travel tax and 
enabling seamless travel for Filipinos and our neighbors in the ASEAN region.
Doing so ultimately fulfills our commitment to international agreements, specifically 
the ASEAN Tourism Agreement signed in 2002, stating that member states shall 
facilitate travel within and into ASEAN by, among others, phasing out travel levies 
and travel taxes on nationals of ASEAN Member States traveling to other ASEAN 
Member States5.
In view of the foregoing, the passage of this bill is earnestly sought.
ALAN PETER “COMPANERO” S. CAYETANO^^
4 https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%20110-2024%20Attachment%20.pdf
5 https://asean.org/asean-tourism-agreement/


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S. B. No.
424
V,. ' 
of [Ilf 1 r: iv;i
25 JUL 10 P6 :05
aravEDDi;
INTRODUCED BY SENATOR ALAN PETER “COMPANERO” S. CAYETANO
AN ACT
ABOLISHING THE TRAVEL TAX ON FILIPINOS AND ON NATIONALS OF 
ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) MEMBER 
STATES TRAVELLING TO OTHER ASEAN MEMBER STATES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
1 
SECTION 1. Abolishing the Travel Tax. - Travel tax shall no longer be
2 
imposed on the following individuals:
3 
a) Filipinos leaving the Philippines; and
4 
b) Nationals of the other Association of Southeast Asian Nations (ASEAN)
5 
Member States leaving the Philippines and travelling to other ASEAN
6 
member states.
7 
SEC. 2. Repeal. - Presidential Decree No. 1183, as amended, laws,
8 
executive orders or parts thereof inconsistent with this Act are hereby repealed,
9 
modified, or amended accordingly.
10 
SEC. 3. Separability Clause. - Should any provision or part of this Act be
11 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar
12 
as they are separable from the invalid ones, shall remain in full force and effect.
13 
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
14 
publication in the Official Gazette or in at least two (2) newspapers of general
15 
circulation.
Approved,