Traveling — for work, family, leisure, or personal growth — is an essential part of life for many Filipinos. Yet, each time a Filipino boards an international flight, one additional cost stands in the way: the travel tax. For decades, this fee has been levied on departing passengers, becoming a regular part of travel expenses.
In 2026, however, a landmark legislative effort is seeking to change that. A new bill has been filed in the Philippine House of Representatives aimed at abolishing the travel tax entirely — a move that could open doors to more affordable travel, stimulate economic activity, and align the Philippines with its ASEAN neighbors.
What Is the Travel Tax?
Before diving into the proposed bill, it’s important to understand what the travel tax is and how it functions.
The travel tax is a government levy imposed on Filipino citizens departing from the Philippines through international airports. It’s collected in addition to airline tickets and other fees such as passenger service charges.
Currently, standard rates are approximately:
₱1,620 for economy class passengers
₱2,700 for first-class passengers
Reduced rates and exemptions exist for certain groups (e.g., senior citizens, students, persons with disabilities, and dependents of overseas Filipino workers), but the tax still applies to most Filipino travelers.
Proceeds from travel tax collections are shared among government agencies — major portions going to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and the National Commission for Culture and the Arts (NCCA).
What Is the New Bill to Cancel Travel Tax?
In early February 2026, House Majority Leader Ferdinand Alexander “Sandro” Marcos filed House Bill No. 7443, also known as the Travel Tax Abolition Act of 2026.
The core aim of the bill is to abolish the travel tax altogether by repealing existing provisions in:
Presidential Decree No. 1183 (which originally imposed the travel tax)
Section 73 of the Tourism Act of 2009 (which affirms the travel tax’s role in tourism support)
Under this proposal, no government agency or private entity would ever again collect travel tax once the law takes effect.
Immediate Refund Provision
A notable feature of the bill is that it calls for immediate refunds of travel taxes already collected for flights scheduled after the bill’s effectivity date. This refund component is designed to ease the transition and compensate those who have already paid the levy for upcoming travel.
Key Reasons Behind the Push to Cancel the Travel Tax
1. Reduce Cost of Travel for Filipinos
One of the most cited motivations behind the bill is to lower the financial burden on travelers. With the cost of living already high, many argue that travel — whether for work, family reunions, or education — should not be made more expensive by an additional tax.
House Majority Leader Sandro Marcos emphasizes that high travel costs can reduce mobility and limit opportunities for ordinary Filipinos. In his statement, Marcos noted that when travel becomes too expensive, “fewer people move, fewer people spend and fewer opportunities circulate through the economy.”
2. Stimulate Tourism and Economic Growth
Supporters of abolishing the travel tax argue that removing barriers to travel will boost tourism — both domestically and internationally.
This effect is expected to extend beyond airlines, benefiting hotels, transportation services, tour operators, retail establishments, and hospitality sectors that rely on tourist spending.
By reducing outbound travel costs, proponents also contend that Filipinos might travel more often and spend more in destination economies, feeding back into the Philippines’ tourism economy when foreign visitors reciprocate — though this is debated.
3. Align With ASEAN Tourism Integration
The Philippines is part of the Association of Southeast Asian Nations (ASEAN), which encourages member states to ease travel barriers and promote regional mobility.
Many ASEAN nations have already scrapped similar travel levies or reduced them significantly to boost regional tourism and economic cooperation.
In contrast, abolishing the travel tax would help the Philippines remain competitive and aligned with these regional trends.
4. Uphold the Constitutional Right to Travel
Some lawmakers frame travel tax abolition as part of protecting the constitutional right of citizens to travel freely. Although the right to travel is a recognized principle, imposing financial barriers that limit mobility is viewed by proponents as contrary to that right.
This legal-rights framing adds a human-rights dimension to the discussion, especially for groups who travel for essential reasons rather than leisure.
Who Supports the Bill — and Why
Support for abolishing the travel tax spans several sectors:
House Lawmakers
House Majority Leader Sandro Marcos leads the current effort with HB 7443, supported by several colleagues who see travel tax removal as a way to empower Filipino families and stimulate economic activity.
Tourism Advocates
Abolishing the tax is generally supported by tourism advocates who argue that cost barriers hurt both domestic and international travel. They contend that a more accessible travel environment encourages domestic discovery and international engagement.
Social Equity Advocates
Some lawmakers have also pushed for broader travel tax reform to benefit vulnerable groups — such as senior citizens, students, low-income families, and persons with disabilities — who feel the weight of travel expenses most acutely.
Pro-Regional Integration Lawmakers
Officials referencing ASEAN integration argue that removing travel levies will help cement the Philippines’ role as an accessible and welcoming travel destination within the region.
Who Has Opposed or Offered Alternatives — and Why
Not all stakeholders agree with fully abolishing the travel tax. Some concerns and alternative proposals include:
Concern Over Funding Loss
Travel tax collections have historically funded vital programs under TIEZA, CHED, and NCCA. Without the levy, critics argue that crucial tourism development, cultural programs, and tourism education could suffer unless alternative funding is established.
Alternative: Targeted Tax Reform
Some lawmakers — including senators — have proposed reforms that retain travel tax for certain passengers (e.g., business class) while exempting others such as economy-class travelers. The goal of these measures is to make travel more equitable without fully eliminating revenue.
Others advocate for expanded exemptions rather than full abolition, allowing specific groups or situations to be tax-free while still collecting some travel tax revenue.
How Would the Government Replace Travel Tax Funding?
One of the bill’s most critical components is its plan to transition funding sources.
Instead of relying on travel tax collections to fund agencies like TIEZA, CHED, and NCCA, the bill proposes:
Funding Through the National Budget
Budget allocations for tourism development, cultural programs, and related educational initiatives would be integrated into the annual General Appropriations Act (GAA). This means Congress would fund these priorities through regular national budgeting rather than through passenger levies.
The travel tax abolition would thus shift the burden of supporting these programs from individual travelers to the broader national budget.
This approach aims to provide continuity and transparency in program funding while removing direct costs from passengers.
What Could This Mean for Filipino Travelers?
Lower Cost of Travel
If the bill passes, travelers could save thousands of pesos each time they fly abroad — making travel more affordable and accessible to a broader segment of the population.
Boost to Personal Mobility
Reduced travel costs may empower more Filipinos to visit distant relatives, pursue educational opportunities, and explore the world — potentially enhancing personal well-being and career mobility.
Increased Tourism Activity
Lower outbound costs could trigger increased travel demand domestically and internationally, creating broader economic engagement across sectors like hospitality, transportation, culture, and retail.
Potential Challenges and Considerations
Loss of Direct Revenue
While travel tax collections account for a fraction of national revenue, losing that stream could require careful budget rebalancing.
However, proponents argue that the overall economic gain from increased travel and tourism spending could outweigh this loss.
Ensuring Fair Funding for Programs
Without the travel tax, funding for cultural programs, tourism education, and regional development must remain stable. Critics caution that this requires legislative discipline to include necessary allocations in national budgets consistently.
The proposed bill to cancel the travel tax in the Philippines represents a major shift in public policy that could have long-lasting effects on travel, tourism, and economic mobility.
By reducing travel costs, aligning with regional trends, and reforming how related programs are funded, the bill seeks to make travel more inclusive and economically productive. However, success hinges on careful legislative action, budget adjustments, and broad support across sectors.
For Filipino travelers — from students to OFWs, families to solo adventurers — the outcome of this bill could redefine how they experience mobility in the years to come.
Stay updated as the bill progresses through Congress — and prepare for a future where travel might just become easier, more affordable, and more rewarding for all Filipinos.
