**MANILA, Philippines —** House Majority Leader Ferdinand Alexander "Sandro" Marcos has filed a landmark bill to immediately abolish the Philippines' decades-old travel tax, aiming to slash costs for millions of Filipino travelers and international residents.
The move marks a significant shift in the country’s aviation and tourism policy, targeting a controversial levy that has long been criticized as a barrier to international mobility.
**At a Glance: The Push to End the Travel Tax** * **The Legislation:** House Bill No. 7443, titled the "Travel Tax Abolition Act of 2026," seeks to repeal historical mandates requiring citizens to pay up to PHP 2,700 before departing the country. * **The Outlier:** The Philippines is currently the only member of the Association of Southeast Asian Nations (ASEAN) that continues to impose a separate travel tax on its own nationals. * **The Economic Stake:** While the government faces a PHP 4 billion annual revenue loss, proponents project the move will stimulate nearly PHP 300 billion in broader economic activity through increased tourism and retail spending.
The filing of the bill comes as the Philippine government faces mounting pressure to modernize its infrastructure and align with regional standards. Under the proposed Travel Tax Abolition Act of 2026, the state would dismantle a fiscal structure that has been in place since the martial law era.
According to the bill’s explanatory note, the legislation seeks to strike down Presidential Decree No. 1183—originally enacted by the late President Ferdinand Marcos Sr.—as well as Section 73 of Republic Act No. 9593, also known as the Tourism Act of 2009.
Current regulations require Filipino travelers to pay PHP 1,620 for economy class and PHP 2,700 for first-class passage. These fees, which are often collected at airport counters or integrated into ticket prices, have become a focal point of frustration for travelers.
"The move comes as a response to the evolving needs of the Filipino people," a source familiar with the legislative agenda told CNN. "It marks a significant shift in how the government views the right to travel, transitioning from a taxable privilege to a fundamental aspect of regional connectivity."
Proponents of the measure argue that the existing fees disproportionately affect lower-income families and Overseas Filipino Workers (OFWs). By removing this financial hurdle, the House leadership aims to fulfill long-standing international commitments.
The Philippines remains a glaring outlier within the ASEAN bloc. Under the 2002 ASEAN Tourism Agreement, member states committed to phasing out travel-related levies to promote regional integration. While neighbors like Thailand, Vietnam, and Indonesia have moved toward more seamless borders, the Philippines has maintained its separate tax.
**The Big Picture** The abolition of the travel tax is about more than just cheaper airline tickets; it is a bid for regional competitiveness. In a post-pandemic global economy, Southeast Asian nations are racing to capture the "revenge travel" market. By removing a PHP 2,700 entry barrier, Manila is signaling to the aviation industry that it is ready to become a primary hub for the region. Analysts suggest that the move could drastically increase the frequency of regional flights, potentially making the Philippines a more attractive destination for low-cost carriers.
The financial implications of the bill are substantial. Economic analysis integrated into the measure suggests that the benefits of abolition far outweigh the immediate revenue loss to the Treasury.
While the government stands to lose approximately PHP 4 billion in annual collections, studies cited by the House leadership indicate the move could generate nearly PHP 300 billion in broader economic activity. Lowering the cost of travel is expected to stimulate demand for hospitality, airline services, and retail, fueling job creation across the archipelago.
To address the resulting funding gap, the bill provides a clear transition plan for government agencies that currently rely on the tax.
Currently, the travel tax serves as a primary source of funding for the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and the National Commission for Culture and the Arts (NCCA). Under the new proposal, funding for these entities would be integrated into the annual National Budget through the General Appropriations Act.
Officials familiar with the situation say this shift is intended to improve transparency. By moving the funding to the national budget, the responsibility for tourism development and cultural heritage would rest with the national government rather than being extracted directly from the pockets of individual travelers.
The measure also includes a consumer-centric provision for immediate refunds. Passengers who have already paid the tax for flights scheduled on or after the law’s effectivity date would be entitled to a full reimbursement, per the current draft of the bill.
The executive branch appears to be moving in lockstep with the legislature. The Department of Finance has expressed formal support for the measure, and a counterpart bill has already been introduced in the Senate to expedite the legislative process.
House leaders expect to push for the bill's inclusion in the list of priority measures to ensure its swift passage into law. The bill now heads to the committee level for further deliberation.
This is a developing story.