By: Sophia Pacheco
Photo courtesy of INQUIRER FILE PHOTO
The Philippine government could generate as much as ?22 billion in additional annual income if it abolishes the travel tax under a proposed measure in Congress, House Committee on Ways and Means Chairman Rep. Romero “Miro” Quimbo said Sunday, February 15, 2026.
The proposal, filed as House Bill No. 7443 by House Majority Leader Ferdinand Alexander “Sandro” Marcos, seeks to eliminate the outbound travel tax imposed on Filipino airline passengers. Under current rules, economy-class travelers pay ?1,620 and first-class passengers ?2,700 before departure.
Quimbo said the government now collects about ?7.5 billion annually from the travel tax, but computations by the House Ways and Means Committee show that scrapping the levy could trigger economic activity that would boost tax collections to around ?22 billion.
“If we remove the P1,620 from the plane fare, that means more people will be able to travel. So the earnings of our travel agencies and airline companies will increase. It’s a no-brainer,” Quimbo said in an interview, noting that lower fares could lead to broader spending and higher income tax receipts.
Quimbo added that the projected increase in economic activity could offset initial revenue losses within about 18 months after abolition.
Lower airfare costs could reduce ticket prices by about 20% for popular destinations such as Singapore and Bangkok, the lawmaker said.
Quimbo said the House leadership is targeting approval of the bill before the June legislative break, with possible implementation before the end of the year, which coincides with the peak travel season.
The proposed abolition of the travel tax is included in the 21 priority measures endorsed by President Ferdinand Marcos Jr., amid increasing public support for the policy.
Senior citizens’ rights advocate and lawyer Romulo Macalintal also conveyed support for the measure in a letter to the President.
“On behalf of the millions of Filipino senior citizens, I write to express our profound gratitude and full support for your administration’s initiative to prioritize the abolition of the travel tax, which will certainly benefit our sector,” Macalintal said.
He described the proposal as a concrete recognition of senior citizens’ contributions and called for the passage of additional measures benefiting the elderly.
Macalintal urged the integration of the mandatory 20% senior citizen discount into expressway Radio Frequency Identification (RFID) systems nationwide, noting that mobility is essential, particularly for medical appointments.
He also sought the continued application of the 20% food discount even during promotional offers and called for uniform implementation of benefits such as free parking, cinema privileges and coding exemptions.
In addition, he asked that senior citizens not be excluded from promotional pricing schemes that prohibit the use of statutory discounts.