The Philippines House of Representatives has approved a bill to abolish the travel tax imposed on Filipino citizens and certain long-term residents when departing the country.
The bill was passed in its third and final reading by the House on Monday, with only one vote against and one abstention, according to the Manila Bulletin.
The measure is expected to reduce travel costs and stimulate tourism-dependent sectors by encouraging Filipinos to travel and create economic opportunities.
It cancels out a levy imposed on ongoing travelers that is addition to airfare and other travel charges.
After the bill takes effect, government agencies and private entities are banned from collecting a travel tax, with the collecting authority to refund any previously paid travel tax for flights scheduled on or after the date it becomes law.
The House Majority leader in February – Sandro Marcos, son of Philippine president Ferdinand Marcos Jr. – noted that “When travel becomes more expensive, fewer people move, fewer people spend, and fewer opportunities circulate through the economy”.
The tax cut also comes amongst surging fuel prices which prompted the Senate on Tuesday to approve a fuel tax relief bill, hoping that reduced taxes will ease the burden on consumers at the pump.
