FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
7 \Jill 
-2 -> -: .,,: 
First Regular Session 
) 
. ., 
S E N A T E  
!IECE?V&9 B'r' 
Senate Bill No. 4 8 3 
I 
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 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 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 improvement 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 
The approval of this bill is earnestly sought. 
to minimize tax avoidance. 
usen


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
) 1 
7 JLII -2. !' : 
OF THE PHILIPPINES 
S E N A T E  
., -~ 
~~~~~~~~~~~~~~ 
!JV: _.._ 
Senate Bill No. 48 3 
INTRODUCED BY SEN. JlNGGOY EJERCITO ESTRADA 
ANACT 
. 
ALLOCATING THE TRAVEL TAX COLLECT~I~N 
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 2007'. 
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.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 
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 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) Collection for the first 15 days of the month shall be remitted not later The 15th 
(2) Collections from the 16th day to the end of the month shall be Remitted not later 
day of the succeeding month; 
than the 30fh day of the succeeding month. 
Travel taxes collected by the charterers or owners of non-commercial 
carriershessels 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. I O .  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. 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 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. 
Within ten (IO) 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 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 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 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 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. - Separabilify 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. Effectivitye - 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,