Filipino travelers could soon be freed from paying the travel tax, with the Senate placing its repeal high on the agenda for passage this year.
Senate President Sherwin Gatchalian announced Thursday that a bill scrapping the levy, already approved by the House of Representatives, is set for deliberation in the upper chamber and should clear it within the year.
Speaking at a Management Association of the Philippines forum, Gatchalian outlined a slate of tax-related measures the Senate intends to move forward. He downplayed concerns about the fiscal hit, arguing that any shortfall would be recovered through a stronger tourism sector.
“Ang revenue loss niya, estimate, is almost around P6 billion. We think that it will be offset by the growth in the tourism industry,” he said.
Also on the priority list is the GINHAWA bill, which would exempt annual incomes of up to P400,000 from taxation. Gatchalian pointed out that the threshold exceeds the P350,000 ceiling favored by President Marcos. A general tax amnesty measure rounds out the package.
On the question of replacing revenue lost to these reforms, the Senate leader said adjustments to other levies are under study, particularly so-called sin taxes.
“Mahirap naman mag-pass ng batas na mawawalan ng koleksyon ang gobyerno, wala tayo pampalit. Pinag-aaralan rin ibang mga sin taxes tulad ng alcohol, tulad ng sigarilyo, vape.”
Gatchalian added that he backs lifting the value-added tax on system loss, with the eventual goal of eliminating system loss charges altogether.
The chamber is likewise keeping pace on its examination of the proposed 2027 national budget. Hearings begin next week and will run into weekends, with lawmakers aiming to wrap up the process before December closes.
“Nag-reserve kami ng Thursday, Friday, Saturday for budget hearings. So walang impeachment on Saturdays,” he said.
