Sandro Marcos files bill to abolish travel tax

Presidential son and House Majority Leader Sandro Marcos has filed a bill seeking to abolish the travel tax, arguing that it no longer serves its purpose and burdens Filipino families while hindering tourism growth. He stated that the tax prevents families from allocating limited resources to basic needs or travel for work, family visits, and opportunities. Marcos believes removing it would boost the economy and tourism in the country.

On February 4, Sandro Marcos filed a bill to repeal Presidential Decree 1183, enacted during his grandfather Ferdinand Marcos Sr.'s time, along with the amended Tourism Act of 2009, to eliminate the fixed travel tax on Filipino travelers. He argued that the tax ignores the 2022 ASEAN Tourism Agreement, under which member states agreed to phase out travel levies to boost intra-ASEAN tourism.

"When travel becomes more expensive, fewer people move, fewer people spend and fewer opportunities circulate through the economy. Lowering the cost of travel allows Filipino families to allocate their money where it matters most," he said in a statement.

The Philippines is the only Southeast Asian country imposing a travel tax on its citizens, separate from airport fees. Outbound Filipinos pay P1,620 for economy class or P2,700 for first class. According to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), 50% of proceeds go to TIEZA for infrastructure development, 40% to the Commission on Higher Education for tourism education programs, and 10% to the National Commission for Culture and the Arts.

Marcos proposed funding these programs through the General Appropriations Act (GAA) for stability, rather than relying on travel revenues that deter Filipinos. "A tax that discourages travel also discourages growth. If our neighbors are opening doors and reducing barriers, we should not be holding on to policies that place us at a disadvantage," he added.

Abolishing the tax, he said, would promote domestic and international travel, stimulating sectors like hotels, transportation, and retail, while creating jobs and fostering cultural exchange. "Travel is not a luxury for many Filipinos. It is part of how families stay connected and how workers sustain their livelihoods," he noted.

The bill comes amid public criticism of the government for promoting local travel when domestic trips have become more expensive than international ones.

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President Marcos signs P6.793-trillion 2026 national budget, highlighting education and infrastructure allocations amid vetoes for prudent spending.
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Marcos signs P6.793-trillion budget for 2026

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President Ferdinand Marcos Jr. signed the P6.793-trillion national budget for 2026 on January 5, allocating a record P1.015 trillion to the Department of Education and P530.9 billion to the DPWH. He vetoed P92.5 billion in unprogrammed appropriations, leaving P150.9 billion, while vowing prudent spending to curb corruption. The budget bars political involvement in aid distribution, though critics question the remaining funds.

Amid economic growth and regional agreements, experts argue that the Philippine travel tax is an anachronistic burden that should be phased out. Rooted in history from the 1950s, this levy no longer fits the current era. Its revenues are not effectively used for tourism, sparking frustration among Filipinos.

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Senators Raffy Tulfo and Joel Villanueva have filed bills to reform the travel tax, seeking exemptions for economy class passengers and potentially abolishing it entirely, as airport fees keep rising.

President Ferdinand Marcos Jr. vetoed a P43.24-billion allocation for personnel services in the 2026 national budget, sparking concerns among lawmakers over potential effects on government hiring.

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Following the December 19 announcement of plans for an economic emergency decree, the Colombian government of Gustavo Petro on December 31 issued the tax package via Decree 1390, targeting 11 trillion pesos to address a 16.3 trillion fiscal deficit after Congress rejected reforms. Finance Minister Germán Ávila noted it covers much but not all 2026 needs, impacting liquor, cigarettes, patrimony, finance, and imports.

The Marcos administration is in the final stages of reviewing the Congress-ratified P6.793-trillion 2026 national budget, set to be signed into law tomorrow. Due to the delay, the government will operate under a reenacted 2025 budget for nearly a week. Amid controversies over pork barrel items and flood control funding, watchdogs urge President Marcos to take action.

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The Chamber of Deputies concluded on Tuesday (16/12) the vote on highlights of PLP 108/24, reducing the tax rate for Football Anonymous Societies (SAFs) to 5% and removing the 2% cap on the Selective Tax for sugary drinks. The text, regulating the 2023 tax reform, goes to presidential sanction. The measure has been a government priority since last year and takes effect in 2026.

 

 

 

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