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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President Tinubu and tax reform chairman discuss Nigeria's 2026 tax reforms easing burdens and boosting growth.
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Nigeria insists on tax reform implementation from January 2026

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The Federal Government of Nigeria has reaffirmed its commitment to implementing key tax reform laws starting January 1, 2026, despite ongoing procedural reviews by the National Assembly. Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated that preparations are on track following a briefing with President Bola Tinubu. The reforms aim to ease the tax burden on most Nigerians while promoting economic growth.

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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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.

House Majority Leader Sandro Marcos filed House Bill 7432 on January 27 to institutionalize a 'no work, no pay' policy for Congress members, ensuring salaries are paid only to those fulfilling their duties. The measure addresses concerns over prolonged absences by some lawmakers, including Sen. Ronald 'Bato' dela Rosa.

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The Senate approved on Wednesday, December 17, 2025, a bill that cuts federal fiscal benefits by 10% and raises taxes on online bets, fintechs, and interest on own capital. The measure unlocks about R$ 22.45 billion for the 2026 Budget, avoiding cuts in spending and parliamentary amendments. The text heads to presidential sanction after a 62-6 vote.

Finance Minister Germán Ávila announced the declaration of an economic emergency following the failure of the tax reform, aiming to fund $16 trillion for the 2026 National General Budget. The draft decree includes taxes on assets, alcohol, cigarettes, and a special levy on hydrocarbons and coal. Business guilds such as Andi, ACM, and ACP question its constitutionality and effectiveness.

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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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