MANILA — The Philippine government could potentially generate ₱22 billion in additional annual revenue if the travel tax were scrapped, Marikina City 2nd District Rep. Romero Federico Quimbo said.

Quimbo, chairman of the House Committee on Ways and Means, said removing the tax would initially result in a revenue loss of about ₱7.5 billion per year, but increased travel activity would stimulate economic activity and boost income tax collections.

“Pag bawasan po ‘yan ng 20%, mas maraming tao ang makakabiyahe, kaya dadagdag ang kikitain ng ating travel agencies at airline companies. ‘Yun ang overall na epekto kapalit ng mawawalang humigit-kumulang ₱7.5 billion kada taon kung tatanggalin ito,” Quimbo said.
(If that is reduced by 20%, more people will be able to travel, increasing the income of travel agencies and airline companies. That is the overall effect in exchange for the roughly ₱7.5 billion lost annually if it is removed.)

Based on House computations, the resulting increase in income tax revenue could reach ₱22 billion within roughly 18 months. Quimbo cited airfare to nearby destinations such as Singapore and Bangkok, which ranges from ₱8,000 to ₱9,000, as an example of how lowering travel costs could encourage more Filipinos to fly abroad.

The proposal is part of House Bill No. 7443, filed by House Majority Leader Alexander Sandro Marcos, which seeks to abolish the travel tax for Filipinos traveling overseas for leisure. Lawmakers argue that the levy has outlived its original purpose.

The measure is among the House’s priority proposals and is expected to be transmitted to the Senate before the first regular session of Congress adjourns in June 2026.