Dear PAO,

According to recent news reports, Congress is seeking to abolish the travel tax. May I know what a travel tax is, who is required to pay it, and how much the travel tax amounts to?

Inez

Dear Inez,

The answer to your question may be found in the pertinent provisions of Presidential Decree (PD) 1183, as amended, and Republic Act (RA) 9593, otherwise known as “The Tourism Act of 2009.” Travel tax is a levy imposed by the Philippine Government upon individuals departing from the Philippines, regardless of where the airline ticket was issued or purchased, and irrespective of the mode, currency, or place of payment. (Rule II, Revised Tieza Rules and Regulations Implementing PD 1183, as amended by PD 1205 and Batas Pambansa 38, on Travel Tax).

Its purpose is to help the tourism industry in our country, which is recognized as an indispensable element of the national economy and an industry of national interest and importance. Pursuant to Section 73 of RA 9593, the proceeds of travel tax collection are allocated as follows: 50 percent to the Tourism Infrastructure and Enterprise Zone Authority (Tieza), 40 percent to the Commission on Higher Education (CHED) for tourism-related educational programs and courses, and 10 percent to the National Commission for Culture and the Arts (NCCA).

Nonetheless, not everyone is required to pay travel tax. Under the Implementing Rules and Regulations (IRR) of PD 1183, the following individuals are exempt from the payment of travel tax, among others: Overseas Filipino Workers (OFWs); infants who are two years old and below on the date of travel; Filipinos who are permanent residents abroad and whose stay in the Philippines does not exceed one year; diplomatic and consular officials and members of their staff; officials, consultants, experts, and employees of the United Nations and of its agencies; and officials and employees of the government traveling on official business. (Rule IV, Id.)

On the other hand, the following individuals are entitled to reduced travel tax rates: minors who are more than two years old to 12 years old on date of travel; accredited Filipino journalists traveling in pursuit of a journalistic assignment; individuals authorized by the President of the Republic of the Philippines to avail of such privilege for national interest reasons; the legitimate spouse of an OFW; unmarried children of an OFW, whether legitimate or illegitimate, who are below 21 years of age; and children of OFWs with disabilities, even if over 21 years of age. (Rule VII, Id.)

At present, the applicable travel tax rates are as follows: for full travel tax, P1,620.00 for economy class passage and P2,700.00 for first-class passage; for standard reduced travel tax, P810.00 for economy class passage and P1,350.00 for first-class passage; and for privileged reduced travel tax rates, P300.00 for economy class passage and P400.00 for first-class passage.

Accordingly, the obligation to pay travel tax, as well as entitlement to an exemption or reduced rate, is determined by the traveler’s eligibility under the above-mentioned statutory provisions. We trust that this clarifies your legal options.

We hope that we were able to answer your queries. This advice was solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]