The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) has formally proposed postponing the abolition of the travel tax until January 2027, citing budgetary concerns.
The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) has officially requested lawmakers to delay the abolition of the travel tax to take effect from January 2027. During the Senate Committee on Ways and Means hearing on March 10, 2026, TIEZA’s chief operating officer Mark Lapid explained that implementing the change mid-year would strain the agency’s budget, noting that 90% of their funding, including salaries for about 305 employees, relies on revenues from the travel tax.
Lapid emphasized that while TIEZA supports the eventual removal of the travel tax to aid tourism, the agency requires continued budgetary support for infrastructure projects to sustain operations. Senator Pia Cayetano, chair of the committee, acknowledged the prioritization of this measure but expressed caution due to possible fiscal repercussions. She suggested a phased implementation or approval at the committee level before plenary amendments.
Currently, Filipino travelers pay a travel tax of ₱1,620 for economy class and ₱2,700 for first class when departing the country. The travel tax abolition is one of the priority measures promoted by the administration of President Ferdinand Marcos Jr. The House Committee on Ways and Means recently approved a substitute bill to scrap the travel tax, indicating legislative momentum on this issue.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/979464/tieza-wants-travel-tax-abolition-pushed-to-january-2027/story/