Airlines welcome travel tax abolition

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February 19, 2026 | 12:00am

MANILA, Philippines — The country’s largest airlines have urged the government to abolish the travel tax to lower the cost of international flights and encourage more Filipinos to travel.

In a statement, the Air Carriers Association of the Philippines (ACAP) said it supports President Marcos’ decision to include the removal of travel tax in the priority legislation list.

The group said removing the travel tax would encourage Filipinos to explore international travel, a development that could scale up outbound tourism and regional connectivity.

In particular, ACAP said abolishing the travel tax would improve the status of the Philippines as a connectivity hub. If overseas travel is affordable, airlines will consider expanding their bases in provinces to serve the heightened demand.

Filipinos are facing affordability issues these days, with the peso struggling to recover against the dollar. In January, Cebu Pacific president and chief commercial officer Alexander Lao warned that flights may become costlier if the peso continues its struggles.

Inflation — the average rate of increase in prices of goods and services — is also picking up, growing for the third straight month in January to two percent.

As such, ACAP said there is an urgency for the government to intervene on pricing, and airlines plan to match the abolition of travel tax by expanding their networks.

“ACAP member-airlines are gearing up to expand their Philippine-based hub networks in a way that generates economic benefits across the tourism value chain,” ACAP said.

Estimates provided by Marikina Rep. Miro Quimbo showed that the economy could generate an additional revenue of P22 billion if the travel tax is removed. On the contrary, the government is expected to lose only P7.5 billion in a travel tax-free landscape.

Filipinos flying abroad currently have to pay travel taxes of P2,700 for first-class passage and P1,620 for economy service. Proceeds of the travel tax fund the development of tourism projects and the maintenance of heritage sites.

House Majority Leader Sandro Marcos had pushed for the abolition of travel tax under House Bill 7443, a measure now certified as priority legislation.

In the bill’s explanatory note, Marcos said taxing personal travel only weakens demand, and this hurts the economy by discouraging Filipinos from spending on leisure.