Philippines Senate Bill Seeks to Abolish Travel Tax
The Government of the Philippines is moving to abolish its decades-old travel tax. On February 10, House Speaker Faustino "Bojie" Dy III successfully pushed for the inclusion of the Travel Tax Abolition Act among the priority measures of the Legislative-Executive Development Advisory Council (LEDAC) during a meeting presided over by President Ferdinand Marcos Jr.
Although the Government of the Philippines is set to lose roughly PHP 7.5 billion (~USD 129.98 million) annually as a result of the abolition, it is expected to raise an additional PHP 22 billion (~USD 380 million) in income taxes as travel agencies, airlines, and related businesses see higher earnings from increased passenger volume Given these projected gains, the measure has received strong support from several lawmakers and is widely anticipated to be enacted. In the Senate, Sen. Kiko Pangilinan and Sen. Joel Villanueva have each filed companion bills
The House tourism panel has since approved its version of the bill, and the House aims to pass the measure before the June recess. If enacted, the law could take effect by the end of 2026 and would guarantee tax refunds for passengers with trips scheduled on or after its effective date.