Senate pushes travel tax reform amid rising airport fees

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.

Amid rising airport fees, Sen. Raffy Tulfo has filed Senate Bill 88 to exempt economy class passengers from the travel tax while keeping it for business and first-class travelers. Tulfo argued that "it cannot be denied that the ordinary Filipino traveler, particularly those who travel on economy class, bears an undue financial burden because of travel tax." The bill does not aim to eliminate the tax completely but to create a fairer structure that spares budget travelers from extra costs. Under current rules, the tax is P1,620 for economy class and P2,700 for first-class, with reduced rates for groups like dependents of overseas Filipino workers.

Meanwhile, Sen. Joel Villanueva introduced Senate Bill 1529 to abolish the tax outright, reviving a prior proposal by former Sen. Koko Pimentel. Villanueva contended that the levy impedes Filipinos' right to travel under Article III, Section 6 of the Constitution, which states that the freedom to travel shall not be impaired except in the interest of national security, public safety, or public health. For a family of four, it amounts to P6,480—funds that could go toward necessities or the local economy. He noted the bill aligns with ASEAN Tourism Agreement commitments, though revenue authorities have warned of fiscal impacts.

These proposals come as travelers express frustration over costs and experiences at Philippine airports, including Ninoy Aquino International Airport (NAIA), where passenger and terminal fees have increased due to privatization and modernization efforts. Reports highlight congestion, long queues, and delays at NAIA. Reform supporters say easing barriers like the travel tax would alleviate the burden on Filipino travelers, while stakeholders emphasize that tax revenue is vital for tourism, education, and cultural programs funded by agencies such as TIEZA, CHED, and NCCA.

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Philippine lawmakers approving bill for President Marcos' fuel tax powers amid Middle East oil crisis.
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House approves bill granting Marcos special powers on fuel excise tax

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The House of Representatives has approved a bill on second reading granting President Marcos special powers to suspend or reduce excise taxes on fuel to cushion the impact of soaring oil prices due to the Middle East conflict. This measure is part of broader government efforts to protect Filipinos from potential increases in commodity prices. Meanwhile, the Department of Transportation is studying a possible fare hike for public transport.

Senator Kiko Pangilinan has filed a bill to abolish the travel tax in the Philippines. The measure aims to alleviate economic burdens on Filipinos and stimulate tourism. President Ferdinand Marcos Jr. has declared it a priority legislation.

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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.

The Ethiopian federal government is set to introduce an aviation security fee, the first in nearly 20 years, as part of a major overhaul of the country's aviation security law. The bill, reviewed by the Council of Ministers and now before Parliament, proposes a one-dollar charge for every international flight passenger and 30 birr for domestic flights. It also includes two dollars per piece of cargo.

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The Land Transportation Franchising and Regulatory Board announced fare increases for nearly all public transport modes, effective March 19, amid rising fuel prices from the Middle East conflict. LTFRB Chair Vigor Mendoza called it “one of the hardest decisions of the board” due to erratic fuel surges.

The House Committee on Ways and Means has approved a substitute bill empowering President Bongbong Marcos to suspend or reduce excise taxes on petroleum products amid surging fuel prices due to the escalating Middle East conflict.

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Starting March 23, toll concessionaires will implement discounts for public utility vehicles, buses and freight services for two months, the Department of Transportation announced. The move aims to alleviate the impact of soaring fuel prices amid the Middle East crisis.

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