House panel backs plan to remove travel tax on outbound passengers

A long-standing levy imposed on outbound Filipino travelers moved a step closer to repeal after the House committee on tourism endorsed a consolidated measure eliminating the travel tax.

Romblon Rep. Eleandro Jesus Madrona, who chairs the panel, approved six proposals seeking to remove the charge, including House Bill 7443 authored by Ilocos Norte Rep. Sandro Marcos. He instructed the committee secretariat to draft the report and forward it to the House ways and means committee led by Marikina Rep. Miro Quimbo, as well as to the appropriations committee chaired by Nueva Ecija Rep. Mikaela Suansing.

The panel’s action came with a condition: lawmakers must first establish a substitute funding source to sustain programs that currently rely on collections from the tax. Members agreed that safeguards for these allocations would be incorporated as the bill proceeds.

Before consolidating the measure, the committee had been deliberating on a dozen separate proposals granting exemptions to certain groups, alongside a privilege speech delivered by Cagayan de Oro Rep. Rufus Rodriguez urging lawmakers to lift the levy on Filipinos leaving the country. Madrona noted that if the tax is ultimately repealed, the exemption bills would become unnecessary and would instead form part of the unified proposal.

Suansing told stakeholders that details of the funding protections would be further refined as discussions continue in the next stages of the legislative process.

Quimbo said eliminating the travel tax could reduce ticket prices and potentially lead to an estimated P22 billion in annual government revenues. He added that the House leadership aims to secure approval of the measure before lawmakers adjourn for their June break.