Dennis Gasgonia

Article (news)

RG Cruz

Vivienne Gulla

ABS-CBN News

<p>MANILA<strong> (UPDATED) </strong>— The Marcos Jr. administration has asked the Senate to abolish the travel tax, with a finance department official saying foregone revenue could lead to more economic avenue since Filipinos will have more money to spend.</p><p>Finance Undersecretary Karlo Fermin Adriano of the Fiscal Policy and Monitoring Group said cutting the travel tax could mean an increase of P18 billion in economic activity.</p><div><a href="https://www.abs-cbn.com/news/nation/2026/3/4/ched-asks-for-other-funding-source-should-travel-tax-be-abolished-2218"><strong>CHED asks for other funding source should travel tax be abolished<br/></strong></a></div><p>&quot;But that&#x27;s a very rough estimate, and the (Department of Finance) is still finalizing its cost-benefit analysis on this,&quot; Adriano told a Senate panel on Tuesday.</p><p>Adriano said the government stands to forego as much as P9.3 billion a year in revenues if travel tax, which ranges from P1,620 to P2,700, is completely abolished.</p><p>&quot;And then if the exemption is only on economy class, that&#x27;s around P5.3 billion to around P7.9 billion revenue forgone yearly.&quot; </p><p>He said that of the collections of the travel tax, half goes to the Tourism Infrastructure and Enterprise Zone Authority.</p><p>The remainder is divided between the Commission on Higher Education, which gets 40% and the National Commission for Culture and the Arts, which gets 10%.</p><p>Adriano said any talk of abolishing th tax should consider how these agencies would get funding. </p><div><br/></div><div><br/></div><div><strong>PASSED ON 2ND READING AT HOUSE</strong></div><p>A bill seeking to abolish the travel tax has already hurdled second reading at the House of Representatives.</p><p>During the House plenary session on Wednesday, the lower chamber approved on second reading House Bill 8464, or the proposed Travel Tax Abolition Act of 2026, via viva voce voting.</p><div><a href="https://www.abs-cbn.com/news/business/2026/3/9/house-panel-oks-scrapping-travel-tax-1302"><strong>House panel OKs scrapping travel tax</strong></a></div><p>The bill requires the national government to include funding in the national budget to the TIEZA, CHED and NCAA programs that the travel tax funds.</p><p>In a speech to the House in plenary, Romblon Rep. Eleandro Jesus Madrona, House Tourism Committee chair, said the travel tax &quot;supresses travel demands, dampens tourism growth and discourages mobility, among others.&quot;</p><p>He said abolishing it would reduce travel costs, boost tourism-dependent sectors, and  &quot;encourage our countrymen to travel, thereby fostering economic opportunities and cultural exchange.”</p><div><a href="https://www.abs-cbn.com/news/nation/2026/3/4/ched-asks-for-other-funding-source-should-travel-tax-be-abolished-2218"><strong>CHED asks for other funding source should travel tax be abolished</strong></a></div>

<p>The Marcos Jr. administration has asked the Senate to abolish the travel tax, with a finance department official saying foregone revenue could lead to more economic avenue since Filipinos will have more money to spend.</p>

The Marcos Jr. administration has asked the Senate to abolish the travel tax, with a finance department official saying foregone revenue could lead to more economic avenue since Filipinos will have more money to spend.

Scrapping travel tax could boost economic activity, DOF tells senators

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Scrapping travel tax could boost economic activity, DOF tells senators

RG Cruz,

Vivienne Gulla,

ABS-CBN News

Published March 11, 2026 08:57 PM PHT

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Updated March 11, 2026 11:16 PM PHT

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House of Representatives

Travel tax

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