No More Travel Tax? New Senate Bills Push to Scrap ₱1,620 Fee for Economy Passengers

If you are currently saving up for a flight, you probably already know that the ticket price on your screen is never the final amount you pay. By the time you reach the checkout page, you have to add the cost of your luggage, seat selection, and the mandatory ₱1,620 Philippine travel tax. For a family of four, that extra charge alone totals ₱6,480 before you even step inside the terminal.

New senate bills to lower travel costs

Image credit: Canva Pro

Two separate measures are now moving through the Senate to change how this works. Senator Raffy Tulfo has filed Senate Bill 88, which specifically targets the financial weight placed on ordinary travellers. His proposal is simple: stop charging travel tax for anyone flying in economy class.

Under this plan, the government would still collect money from those flying in business or first class. The logic is that passengers who can afford premium seats have a higher capacity to contribute to national funds. This allows the government to keep supporting agencies like the Commission on Higher Education and the National Commission for Culture and the Arts without taking money from budget-conscious travellers.

Also read: What the Philippine Travel Tax Is and Why It Raises Eyebrows

A push for total abolition

While Senator Tulfo wants to exempt economy passengers, Senator Joel Villanueva is pushing for a total removal of the tax for everyone. In Senate Bill 1529, he argues that the tax actually hinders a Filipino’s constitutional right to travel. He points out that the ₱6,480 a family pays in taxes could be better spent on daily necessities or reinvested into the local economy.

Senator Villanueva also noted that removing the tax aligns with the ASEAN Tourism Agreement. However, some government revenue authorities have warned about the potential fiscal impact of losing this source of income.

Rising fees at NAIA

Image credit: Manila International Airport Authority

These legislative moves come at a time when flying out of Manila is becoming more expensive. Because of recent privatization and modernization efforts, international airport operators have increased terminal fees and passenger charges. This is especially noticeable at Ninoy Aquino International Airport (NAIA), where travellers still deal with frequent congestion and long queues.

Beyond the ticket price, passengers are currently facing aircraft pushback delays and crowded terminals. Supporters of these bills argue that if the airport experience involves these types of struggles, the government should at least reduce the financial barrier of the travel tax to ease the burden on the public.

Also read: Travelling Abroad Could Get Cheaper as Tulfo Seeks to Abolish Travel Tax

Current travel tax rates and OFW discounts

For now, the current tax rates still apply to all outgoing international flights, so you should continue to budget for these costs when planning your next holiday. If you are flying in economy class, the full travel tax is ₱1,620, while those travelling in first class are required to pay ₱2,700. There are also reduced and privileged rates still available for specific groups, such as the dependents of overseas Filipino workers (OFWs).

Requirements for the OFW dependent discount

The information regarding these discounts and requirements comes directly from the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the government agency responsible for collecting travel tax in the Philippines.

If you are a spouse or an unmarried child (under 21 years old) of an OFW, you can avail of the Privileged Reduced Travel Tax, which is only ₱300 for economy and ₱400 for first class. To claim this, you must present the following documents:

• Original Passport. The valid passport of the dependent travelling.

• Overseas Employment Certificate (OEC). An original copy or a certified true copy of the OFW’s Balik-Manggagawa form.

• Proof of Relationship. An original or authenticated Marriage Certificate (for spouses) or Birth Certificate (for children).

• Flight Ticket. Your issued airline ticket or booking confirmation.

You can apply for this reduced rate online through the TIEZA website at least three days before your flight, or visit a TIEZA counter at the airport on the day of your departure.

Removing the travel tax would be a big help for anyone who has had to save up for months just to afford a flight. With airport terminal fees increasing, removing this extra fee of ₱1,620 would finally give the average traveller a bit of a breather! It makes sense to focus on the costs we can actually control, ensuring that travel doesn't become a luxury only the wealthy can afford.

Featured image credit: Manila International Airport Authority