Tulfo proposes exempting economy class from travel tax

Senator Raffy Tulfo has proposed exempting economy class passengers from paying the travel tax and instead imposing a luxury tax on business and first-class passengers.

As chairman of the Senate Committee on Public Services, Tulfo plans to file a bill addressing his proposal, which aims to continue funding for tourism projects through TIEZA without violating existing laws.

In 2022, Senator Koko Pimentel III filed a similar bill proposing the non-imposition of travel tax for Filipinos and citizens of ASEAN countries traveling within the region.

The current travel tax is mandated by Presidential Decree 1183 issued in 1977, which Tulfo aims to repeal, citing Article III, Section 6 of the Philippine Constitution that emphasizes the right to travel cannot be impaired except for reasons related to national security, public safety, or public health.

Finance Secretary Ralph Recto declined to comment on the proposal, stating it should 'percolate' through legislative discussions.