DECEMBER 31, 2025 — A proposal in Congress seeks to scrap the decades-old travel tax for Filipinos and other ASEAN nationals, a move that could reshape regional tourism and ease the burden on ordinary travelers.

Parañaque City Rep. Brian Raymund Yamsuan filed House Bill No. 4793, aiming to abolish the levy imposed on passengers flying to Southeast Asian destinations. The measure, he said, would align the Philippines with its commitments under the ASEAN Tourism Agreement of 2002, which calls for phasing out travel-related charges among member states.

The travel tax, created under Presidential Decree No. 1183 nearly 50 years ago, currently costs P2,700 for business class and P1,620 for economy class passengers. While overseas Filipino workers and infants are exempt, most travelers remain subject to the fee. 

Yamsuan argued that the tax has become “redundant” given existing revenue streams such as income and value-added taxes.

“Bakit may mga exemptions pa, pwede namang lahat mabenepisyuhan?” Yamsuan said, criticizing proposals to exempt only certain groups, like travel vloggers. 

(Why make exemptions when everyone can benefit?)

He noted that a family of four flying economy to Singapore or Thailand pays almost P6,500 in travel tax alone — money that could instead be spent on their trip.

The Department of Finance estimates that removing the tax could cost the government about P5 billion annually. But Yamsuan countered that the potential economic boost far outweighs the loss, citing independent projections of up to P300 billion in gains from increased tourism activity.

Tourism Infrastructure and Enterprise Zone Authority (TIEZA) officials have floated exemptions for “certified” travel bloggers, with COO Mark Lapid reportedly considering legislative support from his father, Senator Lito Lapid. Yamsuan dismissed the idea, saying selective exemptions highlight how outdated the tax has become.

Scrap the levy, but at what cost?

Some say cheaper regional travel could encourage more families to explore neighboring countries, while others worry about the government’s ability to fund cultural and heritage projects once supported by the tax.

The issue touches on broader concerns about accessibility. For middle-class households, the tax can be the difference between booking a trip or staying home. For the tourism industry, lifting the levy could mean stronger competition with neighbors like Malaysia and Thailand, where travel costs are already lower.

Yamsuan insists the measure is not unprecedented, noting past government efforts to ease travel restrictions. 

“The fact that TIEZA is mulling this exemption means imposing the outdated travel tax is a disincentive to personal travel,” he said.

(Image: Philippine News Agency)