Dear PAO, 

My family traveled to Japan during the Holy Week. I was with my husband, our three-year-old daughter, and my parents, who are both senior citizens. Before our boarding passes were issued, the airline staff instructed me to pay the travel tax at a separate counter. I was shocked to learn that the total amount was P7,290. I asked whether senior citizens are entitled to a discount on the travel tax, but the personnel at the counter informed me that only my daughter, who is below twelve (12) years old, was eligible for a reduced travel tax. Is this correct? Thank you.

Kimberly 

Dear Kimberly, 

Pursuant to Presidential Decree (P.D.) No. 1183, as amended, a travel tax is a levy imposed by the Philippine government on individuals departing from the country, regardless of the place of issuance of the airline ticket and irrespective of the place or manner of payment. (Rule II, Revised Tieza Rules and Regulations Implementing Presidential Decree No. 1183, as amended by P.D. 1205 and Batas Pambansa Blg. 38, on Travel Tax) 

The same issuance enumerates the categories of persons who are exempt from the payment of travel tax. These include, among others, overseas Filipino workers (OFWs), Filipinos who are permanent residents of foreign countries, and infants aged two years and below. Other individuals may likewise qualify for exemption, provided that they submit the necessary supporting documentation to establish such entitlement. (Rule IV, Id.) 

In addition, the law and its implementing rule provide for reduced travel tax rates for specific categories of individuals. Those who may avail of the standard reduced travel tax include minors who are 12 years old or below but not lower than two years of age; accredited Filipino journalists whose travel is in pursuit of journalistic assignments as certified by the Office of the Press Secretary; and those authorized by the President of the Republic for reasons of national interest. On the other hand, persons who may avail of the privileged reduced travel tax are the legitimate spouse of an OFW and legitimate and unmarried children of a contract worker, 21 years of age or low. (Rule VII, Id.) 

The full travel tax rates currently in force in the Philippines are as follows: P1,620 for economy class passage, and P2,700 for first class passage. On the other hand, the standard reduced travel tax rates are P810 for economy class passage and P1,350 for first class passage. Lastly, the privileged reduced travel tax rates are P300 for economy class passage and P400 for first class passage.

In your case, only your daughter qualifies for the standard reduced travel tax rate of P810.00, being under 12 years of age. As to your parents, while both are senior citizens, they do not fall under the categories of persons exempt from the payment of travel tax, nor are they eligible for reduced rate. Accordingly, they remain liable for payment of the full travel tax. It bears emphasis that, to date, no law grants senior citizens exemption from or a discount on the travel tax.

It is well-settled in jurisprudence that tax exemptions are strictly construed against the taxpayer and liberally in favor of the taxing authority. Exemptions from taxation are never presumed and must be clearly and convincingly established by the party claiming such exemption. In the absence of a clear legal basis, claims of exemption cannot be upheld.

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

We appreciate your trust and support.

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]