Law Summary

Introduction

Presidential Decree No. 1951, issued on September 5, 1984, amends certain sections of Presidential Decree No. 1183, which governs travel tax rates for contract workers and other specific groups. The intent is to restore previous travel tax rates in response to public demand.

SECTION 1: Amendment to Section 2-A

• Legal Principle/Provision: This section expands the exemptions from travel tax by adding categories of individuals who are not subject to the travel tax under specific conditions.
• Key Definitions Introduced:
  • Travel Agencies: Entities that provide travel-related services including ticket sales.
  • Non-Revenue Tickets: Tickets issued at no cost to the traveler, typically for employees of travel-related companies.
  • Discounted Tickets: Tickets sold at a reduced price.
• Important Requirements/Procedures:
  • Officials and employees of travel agencies, airlines, and shipping companies traveling on non-revenue or discounted tickets are exempt.
  • Filipino journalists traveling for journalistic purposes, certified by their editors, are also exempt.
• Bullet Points: • Exemption applies to officials and employees of travel-related entities. • Exemption includes non-revenue and discounted tickets. • Filipino journalists must have certification from their editors to qualify for exemption.

SECTION 2: Amendment to Section 2-B

• Legal Principle/Provision: This section specifies the travel tax rates applicable to contract workers and their dependents.
• Key Definitions Introduced:
  • Contract Workers: Workers with approved employment contracts certified by the Ministry of Labor and Employment.
  • Dependents: Spouses and children aged 21 years or below of contract workers.
• Important Requirements/Procedures:
  • Contract workers and their dependents are subject to a travel tax rate of:
    • Peso equivalent of US$23 for first-class passage.
    • Peso equivalent of US$17 for economy class passage.
• Bullet Points: • Travel tax rates for contract workers restored to previous levels. • Requires certification from the Ministry of Labor and Employment for tax applicability. • Dependents covered include spouses and children under 21 years.

SECTION 3: Repeal of Inconsistent Laws

• Legal Principle/Provision: This section states that any laws, decrees, orders, or regulations that conflict with this Decree are repealed or modified accordingly.
• Bullet Points: • Ensures consistency and clarity in the enforcement of travel tax regulations. • Automatically repeals conflicting laws, ensuring the new provisions take precedence.

SECTION 4: Effectivity

• Legal Principle/Provision: This section declares that the Decree shall take effect immediately upon issuance.
• Bullet Points: • Immediate implementation upon signing. • No specified transition period for compliance.

Key Takeaways

• The Decree amends travel tax provisions, specifically restoring lower rates for contract workers and adding exemptions for specific groups.
• Filipino journalists and employees of travel-related companies benefit from tax exemptions under defined conditions.
• The Decree is effective immediately, ensuring prompt application of the new tax rates and exemptions.
• Conflicting laws are repealed to maintain legal coherence.