The House Committee on Tourism approved six bills to completely eliminate the travel tax, although there is no clear plan yet on how to support the programs it funds.
During the hearing on Monday, February 23, the committee discussed proposals to grant exemptions to some travelers and eliminate the tax altogether. According to Chair Eleandro Jesus Madrona, if Congress passes the repeal of the travel tax, the exemption bills will no longer be needed.
Agencies like TIEZA, CHED, and NCCA are the main beneficiaries of the travel tax. Under the current scheme, 50% of the collection goes to TIEZA, 40% to CHED, and 10% to NCCA. The funds are used for infrastructure, tourism education, and cultural development projects nationwide.
According to TIEZA COO Mark Lapid, a large portion of the travel tax is used to rehabilitate heritage sites, ecotourism destinations, and other facilities. In 2025, the government collected P8.7 billion, of which 96% came from economy-class passengers. If the travel tax is completely eliminated, it is possible that 300 TIEZA employees will lose their jobs.
Meanwhile, CHED Chair Shirley Agrupis explained that the Higher Education Development Fund (HEDF) relies on the travel tax for 85.6%. This supports 5.4 million students in 1,906 higher education institutions and 1.6 million scholars. Rep. promised Mikaela Suansing said the national budget will support the programs, but a clear scheme is needed to maintain flexibility in the use of funds.