Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3874

House Bill No.

Introduced by Representative PABLO JOHN F. GARCIA

EXPLANATORY NOTE

If to travel is a right (Section 6, Article Ill, 1987 Constitution), why is its exercise being
taxed?

The travel tax under Republic Act No. 1478 was enacted in 1956, when the right to
travel was not expressly provided under the 1935 Constitution, unlike today, when the
right may only be impaired “in the interest of national security, public safety and public
health, as may be provided by law.” (/d.) It was aimed at curtailing unnecessary foreign
travels and to shore up foreign exchange. It was enacted at a time when travel was a
luxury available only to the rich.

It would be an understatement to say that times have drastically changed since.

Today, with the availability of cheap airline tickets from budget airlines, and inexpensive
accommodations through online marketplaces and home-sharing platforms, travel is no
longer the exclusive domain of the rich. Indeed, in the last two decades, we have seen a
marked increase in foreign travel across all classes, especially as the increasingly
competitive jobs market requires exposure to foreign trends, cultures and ideas. It would
not be an overstatement to say, in fact, that foreign travel is increasingly becoming a
necessity.

In fact, as a signatory to the 4 November 2002 Association of Southeast Asian Nations
(ASEAN) Tourism Agreement, the Philippines—recognizing these trends—committed
itself to repealing travel levies and taxes on nationals of ASEAN member states
traveling to another state within the ASEAN.

Taxing foreign travel is unreasonably burdensome on citizens and residents. The
income from which they obtained funds to purchase airline tickets would already have
been subject to income taxes. The sale of the airline ticket would already have been
subject to taxes which are passed on to the passenger. Furthermore, the passenger is
made to pay terminal fees during every trip. For a guaranteed right, therefore, foreign
travel would appear to be the most overtaxed and overburdened.

It is time to repeal the travel tax and to make the constitutionally guaranteed right to
travel unencumbered and unimpeded and more accessible to every Filipino.

The immediate passage of this bill, therefore, is earnestly sought.

PAI J . GARCIA


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No.

Introduced by Representative PABLO JOHN F. GARCIA

AN ACT
ABOLISHING THE TRAVEL TAX

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. It shall be unlawful to impose, collect, levy or require the payment of
any tax or fee on the travel by any citizen or legal resident of the Philippines to any
destination within or outside the country.

Section 2. The provisions of law authorizing the collection of travel tax,
including, but not limited to, Presidential Decree No. 1183, as amended, as well as all
laws, decrees, rules and regulations inconsistent herewith, are hereby repealed
accordingly.

Section 3. The amounts necessary for the programs heretofore funded by the
travel tax 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, the Commission on Higher Education for the Higher
Education Development Fund, and the National Commission for Culture and the Arts for
the National Endowment Fund for Culture and the Arts. Thereafter, such sums as may
be necessary for these programs shall be included in the GAA.

Section 4. Should any provision or part of this Act be declared unconstitutional,
the other provisions or parts not affected thereby shall remain valid and effective.

Section 5. This Act shall take effect fifteen (15) days after its publication in two
(2) newspapers of general circulation.

Approved,