EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVE
H.B.No,_4452

Introduced by Representative TEODORICO T. HARESCO, JR.

EXPLANATORY NOTE
Overburdening Filipinos by overtaxing travel is ultimately unreasonable.
Section 6, Article III of the 1987 Constitution underscores the right of Filipinos to
travel. Nothing shall impair such right “except in the interest of national security, public

safety, or public health”. However, the existence of travel tax impedes this inherent right.

Passengers leaving the Philippines are charged a full travel tax of P1,620 for economy

class, and P2,700 fir first class, while overseas Filipino workers and Filipino permanent

residents abroad are the only ones exempted from paying travel tax.

Low-cost carriers such as Cebu Pacific and AirAsia Philippines has been lobbying for
the removal of travel tax in the country. A study conducted by the latter proved that the
removal of travel tax will roughly slash P4 billion of revenue in 5 years. However, it will gain

P299 billion in direct and induced revenues due to a prospective upsurge of tourist arrivals.

Itis because of the above-stated reasons that the passage of this measure is earnestly
sought.

TEODORICO T. HARESCO, JR.


EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES 5)
First Regular Session 5)

HOUSE OF REPRESENTATIVES
HB. No.

Introduced by Representative TEODORICO T. HARESCO, JR.

AN ACT
ABOLISHING THE TRAVEL TAX

Be it enacted by the Senate and 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as amended, Republic Act No. 7722, and Republic Act No. 9593, are hereby repealed.

SECTION 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,
the travel taxes paid shall be refunded immediately.

SECTION 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 the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the
Commission on Higher Education (CHED) for the Higher Education Development Fund, and
the National Commission for Culture and the Arts (NCAA) for the National Endowment Fund
for Culture and Arts. Thereafter, such sums as may be necessary shall be include in the
annual GAA.

SECTION 4. Implementing Rules and Regulations. - Within sixty (60) days from the
approval of this Act, the TIEZA shall formulate the implementing rules and regulations in

connection with the immediate refund provided in Section 2 hereof.

SECTION 5. Separability Clause. - If any provision, or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall

remain valid and subsisting.


SI oho

SECTION 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspaper of general circulation.

Approved,