TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
T ;c ;7'
S. No.
SENATE
463
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
AS,?I:.If!1ING THE TRAVEL TAX ON FILIPINOS FOR ECONOMY PASSAGE 
AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. liss'
THF ED^'wfc!SJIOWN AS THE 'DECREE amending and consolidating
THE PROVISIONS ON TRAVEL TAX OF REPUBLIC ACT NO. 1478 AS 
COLLNECTIONNDTHFRFnLpIC N0' 6141' PRESCRIBING THE MANNER OF
tCheLrEeCoTf!°and TfHorRoEt°her purpose"^. PENALTIES F0R eolations
EXPLANATORY NOTE
The 1987 Philippine Constitution recognizes the Filipino people's right to travel. 
Article III, Section 6 of the fundamental law explicitly ordains that "(T)he liberty of 
abode and of changing of the same within the limits prescribed by law shall not be 
impaired except upon lawful order of the court. Neither shall the right to travel be 
impaired except in the interest of national security, public safety, or public health, as 
may be provided by law."
The travel tax was first imposed in 1956. Its basis was Republic Act No. 1478, 
as amended, and its purpose was to prevent unnecessary foreign travels and to 
conserve foreign exchange. It was also meant to promote domestic tourism that 
required only pesos, not dollars.
At first, the tax was a fixed charge based on the cost of the ticket. In a series 
of presidential issuances, it was amended to travel class whether business or economy.
1


Currently, Filipino citizens, permanent resident aliens, and non-resident aliens who
have stayed in the country for more than one year are subject to travel tax. The rates 
imposed are as follows1:
a. P2,700 for first class passage
b. PI,620 for economy class
c. PI,350 - reduced rate on first class passage
d. P810 - reduced rate on economy class
e. P400 - reduced rate on first class passage for dependents of contract 
workers
f. 
P300 - reduced rate on economy class passage for dependents of contract 
workers.
The travel tax is collected by the Tourism Infrastructure and Enterprise Zone 
Authority (TIEZA). RA No. 9593 or the Tourism Act of 2009 provides that haif of the 
proceeds from travel tax collection is accrued to TIEZA, while 40% goes to the 
Commission on Higher Education and the remaining 10% is given to the National 
Commission for Culture and Arts.
Apart from the base fare, Filipinos departing for abroad are required to pay 
administrative fee or ticketing service charge, fuel surcharge, domestic and 
international passenger service fee, passenger service charge for national 
government, and other related fees. Outbound passengers are mandated to pay the 
travel tax at the airport of departure unless the same has been included in the ticket.
The imposition of travel tax is an additional burden to traveling Filipinos wanting 
spend leisure abroad. At a time when promo fares are rampant to entice Filipino 
passengers to travel abroad, it is high time to scrap travel tax for economy passengers. 
Removal of travel tax on economy passengers will encourage more tourists to travel
1pdfttPS://tieZa'SOV'Ph/WP"Content/uploads/2023/11/TIEZA'lmplementing“Rules'and'Regulations'on'Trave|-Tax-


considering that more than half of total air passengers in the country use low-cost
carriers.
Ultimately, this measure will benefit ali Filipino citizens who are currently paying 
a huge portion of their incomes to the national government via income tax, not to 
mention the added burden of paying indirect taxes like the value-added tax.
In obedience to the Constitution and in recognition of easing the burden of 
Filipino travelers, immediate approval of this measure is earnestly sought.
NGEOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
JijL U A.G -2 /
S. No
SENATE
463
Introduced by Senator Jinggoy Ejercito Estrada
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
AN ACT
ABOLISHING THE TRAVEL TAX ON FILIPINOS FOR ECONOMY PASSAGE 
AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1183 
OTHERWISE KNOWN AS THE "DECREE AMENDING AND CONSOLIDATING 
THE PROVISIONS ON TRAVEL TAX OF REPUBLIC ACT NO. 1478 AS 
AMENDED AND REPUBLIC ACT NO. 6141, PRESCRIBING THE MANNER OF 
COLLECTION THEREOF, PROVIDING PENALTIES FOR VIOLATIONS 
THEREOF, AND FOR OTHER PURPOSES"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Section 1 of Presidential Decree No. 1183, is further amended to 
read as follows:
"Section 1. There is hereby imposed, in lieu of the travel taxes 
levied under Section three of Republic Act No. 1478, as 
amended, and Section six of Republic Act No. 6141, a Travel 
Tax from all citizens of the Philippines, permanent resident 
aliens and non-immigrant aliens who have stayed in the 
Philippines for a period of not less than one year. There shall 
be based on the fares on the trip from the Philippines and the 
trip returning on going to the Philippines as well as the fares 
paid in foreign country in continuation of the trip from the 
Philippines and the trip returning or going to the Philippines.
The Secretary of Finance within sixty (60) days from the 
approval hereof, shall prepare the Schedule of Travel Tax for


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
the approval of the President. The schedule of Travel Tax may 
be amended from time to time by the Secretary of Finance 
which amendment shall take effect upon approval by the 
President. The Travel tax under the Schedule shall not exceed 
the equivalent of fifteen per cent (15%) of the fare involved 
but in no case shall the tax be less than two thousand pesos 
for those traveling under first class passage^ one thousand 
two hundred and fifty pesos for those traveling undcr 
eeonomy class passage and seven hundred and fifty pesos for 
all others; provided, however, That NO TRAVEL TAX SHALL 
BE IMPOSED UPON THOSE TRAVELING UNDER 
ECONOMY CLASS PASSAGE; PROVIDED FURTHER,
THAT subject to the provisions of Sec. 2 (i) and (k) hereof, 
individuals who are twelve years old or below shall pay only 
fifty per cent of the tax imposed therein."
Sec. 2. Section 2 of Presidential Decree No. 1183, is hereby further amended 
to read as follows:
Section 2. The following shall be exempt from the payment 
of the travel tax imposed under section one of this Decree -
"x X X
"(I) PASSENGERS TRAVELING UNDER ECONOMY 
CLASS PASSAGE."
Sec. 3. Separability Clause. - If any provision of this Act or the application 
thereof to any persons or circumstances shall be held unconstitutional, the remainder 
of this Act and the application of such provisions to other persons and circumstances 
not otherwise affected shall remain in full force and effect.
Sec. 4. Repealing Clause. - All laws, decrees, proclamations, issuances, or 
ordinances that are contrary to or inconsistent with the provisions of this Act are 
hereby amended, repealed or modified accordingly.
Sec. 5. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a national newspaper of general circulation.