Question & AnswerQ&A (Republic Act No. 1478)
The main purpose of Republic Act No. 1478 is to create a Board of Travel and Tourist Industry to regulate international travel and tourism with a view to the development of the Philippine tourist industry.
The Board is composed of the Secretary of Commerce as Chairman, and the undersecretaries of Foreign Affairs, Finance, Justice, and Public Works and Communications, the President of the Philippine Chamber of Commerce, and the President of the Philippine Tourist and Travel Association as members.
The Board's responsibilities include coordinating government agencies related to tourism, promoting removal of travel barriers, developing tourist attractions, organizing promotion programs, regulating travel agents, and supervising facilities and services catering to foreign travelers.
It imposes a tax on all fares of passengers leaving and returning to the country, with rates varying depending on the cost of the passage, ranging from 7.50 pesos to 100 pesos based on fare brackets.
The carriers and travel agencies issuing foreign travel passenger tickets are tasked with collecting the tax from passengers and remitting these collections to the Board of Travel and Tourist Industry within the first ten days of every succeeding quarter.
Up to 50% of the collected taxes accrue to the Board's funds for tourism development and promotion, while the other 50% go to the general funds of the government, accounted for and delivered to the Treasurer of the Philippines.
Travel agencies must be licensed by the Board and pay an annual license fee not exceeding 100 pesos. No individual or firm can engage in travel agency business without this license.
The Board can prescribe rules for operation and maintenance, and upon non-compliance, it may cancel permits, recommend cancellation, or pursue prosecution of offending parties.
The President may suspend visa fees, exempt foreign tourists from certain taxes, allow export of souvenirs without licenses or fees up to a certain value, and transfer control of relevant government facilities to the Board for tourism promotion.
It acts as the instrumentality of the Board in the promotion of tourism and is exclusively authorized by the government to promote the tourist industry.
The Board must submit a verified detailed report of its collections, disbursements, activities including those of the Philippine Tourist and Travel Association, accomplishments, and plantilla copy five days before the opening of the regular sessions of Congress.
All provisions of law contrary or inconsistent with this Act's aims and objectives are repealed.