Removing Travel Tax Could Generate ₱22 Billion Per Year in the Philippines

The Philippine House of Representatives is reviewing a proposal to remove the travel tax applied to Filipinos travelling abroad. House Bill No. 7443, filed by House Majority Leader Rep. Sandro Marcos and supported by Ways and Means Committee chair Rep. Miro Quimbo, seeks to eliminate the tax, which lawmakers say no longer serves its original purpose.

Also read: 8 Reasons Why Travelling Domestically Can Be More Expensive Than Internationally

Estimated financial impact

Scrapping the travel tax would initially reduce government revenue by around ₱7.5 billion per year. However, officials project that increased travel activity and related spending on airlines, travel agencies, and tourism services could generate up to ₱22 billion per year in the Philippines. Lawmakers estimate that the additional revenue could offset the initial loss within approximately 18 months. The proposal aims to modernise travel regulations while stimulating economic activity.

Effects on travellers and timing

Removing the tax could lower airfares for popular international destinations such as Singapore and Bangkok, making overseas travel more accessible for Filipinos. Travellers could see the change implemented later this year if the bill passes, depending on the legislative process. The proposal is currently under discussion in the House of Representatives and is expected to be forwarded to the Senate before Congress adjourns in June.

Potential impact on domestic travel

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While the tax directly applies only to international travel, officials note that more accessible overseas travel could influence domestic tourism patterns. Airlines, hotels, and travel agencies that operate both local and international services may adjust pricing and promotions, which could indirectly benefit domestic travellers. Increased economic activity from outbound travel could also lead to higher domestic spending in tourism-related sectors, supporting local destinations across the Philippines.

The measure is seen as a way to encourage more overall travel, boost the tourism sector, and increase revenue streams for both the government and travel-related industries. By removing the travel tax, lawmakers aim to create a system that benefits travellers while strengthening the broader travel economy.