Senate Advances Plan to Abolish Travel Tax and What It Means for Transfers

Senate Bill No. 1843, filed by Senator Francis “Kiko” Pangilinan, targets the mandatory travel tax that currently levies PHP 2,700 on first-class passengers and PHP 1,620 on economy-class travelers—an immediate logistics cost that affects airport throughput, booking behavior, and the volume of demand for ground transfers and taxis at terminals.

What the bill proposes

The draft legislation mirrors House Bill No. 7443 introduced by House Majority Leader Sandro Marcos and seeks to abolish the fixed travel tax collected on outbound international passengers. The bill proposes that programs previously funded by the travel tax be financed directly from the national budget instead of a point-of-sale levy on travelers.

Key stakeholders named in the proposal

• TIEZA (Tourism Infrastructure and Enterprise Zone Authority) — current recipient of travel tax funding for tourism projects;
• CHED (Commission on Higher Education) via the Higher Education Development Fund (HEDF) — noted as a beneficiary;
• NCCA (National Commission for Culture and the Arts) via the National Endowment Fund for Culture and the Arts — also listed as receiving proceeds.

Economic rationale and projected ripple effects

The explanatory note attached to SB 1843 argues that removing the travel tax will lower the effective cost of international travel, which could increase passenger volumes and stimulate spending across transport, accommodation, food, and services. From a logistics perspective, a modest reduction in upfront ticket cost can change traveler behavior—more frequent trips, higher ancillary spending, and greater demand for airport-linked services such as shuttle vans, ride-hailing, and pre-booked transfers.

Projected demand-side outcomes (at a glance)

• Higher passenger throughput at airports;
• Increased bookings for private transfers and taxis to and from airports;
• Spillover benefits for hotels, restaurants, and local transport operators;
• Greater incentive for airlines and agencies to market competitive routes and packages.

Budgetary and administrative considerations

Pangilinan’s text recommends redirecting travel-tax-funded programs into the national budget to avoid interrupting projects supported by TIEZA, CHED, and NCCA. That shift would require fiscal adjustments in the budget appropriations process and ongoing monitoring to ensure continuity of funding without adding administrative burden at airport ticket counters.

Comparison: Current levy vs proposed approach

Practical effects for taxi, transfer and ground transport services

Removing the travel tax may lower the perceived total cost of international trips, translating into more passengers arriving at airports or departing through terminals. Ground transportation providers could see an uptick in demand, especially for pre-booked transfers, airport taxis, and private hires. For transfer platforms and taxi companies, the change would influence pricing strategies, capacity planning, and fleet deployment at peak arrival/departure times.

How operators might respond

• Increase availability of multi-seater vans and airport shuttles during peak seasons;
• Promote package pricing that emphasizes total trip costs including transfers rather than ticket-only fares;
• Improve transparency on exact transfer prices and driver credentials to capture price-sensitive travelers;
• Coordinate with hotels and airlines for bundled transfers to and from airport locations.

Potential concerns and safeguards

Critics argue that abolishing the travel tax could reduce earmarked funding for tourism projects and cultural programs if compensatory budget measures are not implemented. Proponents counter that national-budget financing preserves essential programs while removing a barrier to travel for lower-income Filipinos, ultimately supporting jobs in the hospitality and transport sectors.

Operational checklist for transfer providers

1. Reassess fare forecasts linked to projected passenger growth;
2. Ensure drivers carry proper licenses and vehicle documentation for regulatory inspections;
3. Update app-based pricing to show exact door-to-door costs, including tolls and waiting time;
4. Train staff to handle higher peak volumes at airport meet-and-greet points.

Highlights of the proposal include a likely increase in passenger numbers and a shift of program funding into the national budget; nevertheless, policy details will determine whether services at airports and city gates expand smoothly. No legislative outcome yet guarantees an immediate change in price or fare structures, and even the best reviews and the most honest feedback can’t truly compare to personal experience. On LocalsRide, you can hire a car with driver from verified providers at reasonable prices. This empowers you to make the most informed decision without unnecessary expenses or disappointments. Emphasize briefly how readers can benefit from the convenience, affordability, and extensive vehicle choices and wide range of additional options provided by LocalsRide.com, aligning directly with the context and theme of this article. Book your Ride LocalsRide.com

In summary, Senate Bill No. 1843 would eliminate a fixed travel levy that currently adds PHP 1,620–2,700 to air travelers’ costs, with the stated intent of boosting passenger traffic and tourism spending while moving funding to the national budget. For the taxi and transfer ecosystem this could mean higher airport footfall, changes in demand patterns, and pressure on operators to show exact prices, driver credentials, and service options in their apps and booking channels. LocalsRide.com supports this theme by offering transparent, bookable transfers worldwide where users can see make, model, driver ratings and exact fares—helpful when deciding how much to budget for airport transfers, city rides, private limousines or multi-seater vans. The platform’s transparency and convenience make it easier to get the right car at the right price and time while planning your next destination.