Philippines Plans to Abolish Travel Tax for Less Costly Travel

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The Philippines announced plans to abolish the travel tax, aiming to reduce travel costs for Filipinos. This measure is among 21 priorities endorsed by President Ferdinand R. Marcos Jr. under the Legislative-Executive Development Advisory Council (LEDAC). The decision is expected to ease financial burdens on Filipinos traveling for leisure, work, or emergency purposes.

Currently, the travel tax funds various initiatives: 50% supports Tourism Infrastructure and Enterprise Zone Authority (TIEZA) projects, 40% aids educational scholarships, and 10% promotes culture and heritage. Concerns have risen about potential funding losses in education and tourism due to the tax removal. However, Palace Press Officer Claire Castro assured that missing funds will be covered by the national government through the General Appropriations Act.

Economic managers have discussed the benefits of reducing travel expenses, yet the precise revenue impact of the travel tax abolition will be evaluated once the bill is drafted. The LEDAC meeting also highlighted other key legislative priorities, including anti-dynasty measures and reforms to enhance national accountability.

President Marcos stressed the importance of laws to improve citizens' lives, mentioning the Expanded Anti-Online Sexual Abuse of Children Act and legislation against fake news. Discussions on an anti-political dynasty law have begun, with Senator Risa Hontiveros noting ongoing public consultations across the country.

Additional legislative items include the Citizen Access and Disclosure of Expenditures for National Accountability (CADENA) Act and the Party-list System Reform Act. House Speaker Faustino “Bojie” Dy III confirmed that nationwide consultations are set to take place, reported PNA.

Key Takeaways

• The Philippines plans to abolish the travel tax, aiming to cut travel costs.

• Funding gaps from the tax removal will be covered by the national budget.

• Other legislative priorities include anti-dynasty measures and media reforms.

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Adapted by ASEAN Now from PNA 2026-02-10