FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 527 
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INTRODUCED BY SEN. 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 
GOP. 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. 
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There is a problem in sourcing funds for the implementation of the 
programs and projects of the Philippine Tourism Authority. 
The present is 
inadequate for the promotion of 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 
improverqent in our tourism industry. 
The bill seeks to allocate the travel tax collection to the Philippine Tourism 
Authority in order to ensure that its continuing programs and special projects are 
adequately funded. 
The bill also provides the mechanism for the effective collection of the travel 
tax to minimize tax avoidance. 
The approval of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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527
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Senate Bill No. 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ALLOCATING THE TRAVEL TAX COLLECTION 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 House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the ''The Travel Tax 
Reform Act of 2010". 
SEC. 2. State Policy. - The State shall provide adequate funds for the 
promotion, encouragement and development of Philippine Tourism domestically 
and internationally. 
SEC. 3. Allocation of Travel Tax Collections to the 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). 
SEC. 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. 
SEC. 5. - Foreign-Issued Tickets - In cases where tickets were issued 
and/or purchased abroad are taxable under p.o. 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 passengers 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 Col/ections 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 
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 30fh day of the succeeding month. 
Travel taxes collected by the charters or owners of non-commercial 
carriers/vessels 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 outlays. 
SEC. 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. 
SEC. 8. - Refund of the 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 agreements. 
SEC. 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. 
SEC. 10. 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. 
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. 
SEC. 11. Constructfve Distraint of Property of the Col/ecting 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. 
SEC. 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 (P 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 (1) writing upon said 
certificate a description of the real estate property; (2) the corresponding written 
notice to the Registry 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 liability arose. In absence of an 
agent or manager, levy shall be effected upon present occupant of the real estate 
property . • 
Withih ten (10) working days after receipt of the levy on real estate property, 
the levying officer duly designated by the General Manager of the PTA 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 the 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) 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 distrain!ng 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. 
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 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. 
SEC. 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 levying 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. 
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 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 


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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. 
SEC. 17. Forfeiture to 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 (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, 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. 
SEC. 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. 
SEC. 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. 
SEC. 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. 
SEC. 21. - Repealing Clause. - Subparagraph 3 of paragraph of Sectioh 10 of 
Republic.Act No. 7722, otherwise known as the Higher Education Act of 1994 is 
hereby. s'pecifically 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 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. 
SEC. 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,