Travel tax imposed and rates
- Section 1 imposes a travel tax in lieu of prior travel taxes levied under Section three of Republic Act No. 1478, as amended, and Section six of Republic Act No. 6141.
- The travel tax applies to passengers who are:
- (a) citizens of the Philippines;
- (b) permanent resident aliens; and
- (c) non-immigrant aliens who have stayed in the Philippines for more than one (1) year.
- The travel tax applies to those “leaving the country,” irrespective of the place of issuance of ticket and the form and place of payment.
- Section 1 sets the travel tax as the peso equivalent of:
- US$200.00 for first class passage; and
- US$120.00 for economy class passage.
- Section 1 provides a reduced rate for those enumerated under Section 2-A, namely:
- US$125.00 peso equivalent for first class passage; and
- US$75.00 peso equivalent for economy class passage.
Allocation of travel tax proceeds
- Section 2 amends Section 2 of Presidential Decree No. 1867 by requiring that proceeds from the additional tax accrue entirely to the General Fund of the National Government.
- Section 2 allows the Philippine Tourism Authority to maintain its projected receipts for 1984 out of total travel tax collections.
Full exemption through Travel Tax Exemption Certificate
- Section 3 amends Section 2 of Presidential Decree No. 1183 to exempt certain persons from the travel tax under Section 1.
- Exemption is granted only by securing a Travel Tax Exemption Certificate from the Philippine Tourism Authority.
- Section 2 exemptions include:
- (a) foreign diplomatic and consular officials and members of their staff, including immediate members of their families and household domestics whose entry as such has been authorized by the Philippine Government;
- (b) officials, consultants, experts, and employees of the United Nations Organization and its agencies, and persons exempted under existing laws, treaties, and international agreements;
- (c) personnel of multi-national companies with regional headquarters at, but not engaged in business in the Philippines, and their dependents if joining them during the period of assignment in the Philippines as certified by the Ministry of Trade and Industry;
- (d) crew members of ships and airplanes plying international routes who are leaving the country to join their vessels or airplanes or to assume their position therein;
- (e) Filipino citizens who are permanent residents of foreign countries who have stayed in the Philippines for not more than one (1) year;
- (f) bona fide students whose studies abroad are approved by the NEDA Scholarship Committee, and foreign students whose studies in the country is financed by their government or by an international organization;
- (g) infants who are two years old or less;
- (ah) United States military personnel and other United States nationals, including their dependents in proper cases, who are traveling on United States Government-owned or chartered transport facilities or with fares expended out of United States Government funds, including:
- a1) United States military personnel and their dependents;
- a2) Filipinos in the United States Military Service and their dependents;
- a3) Filipino employees of the United States Government traveling on United States Government business;
- a4) U.S. States Department visitor grantees traveling on United States Government business; and
- a5) Destitute American repatriates;
- (ai) persons whose travel is provided or funded by foreign governments with which the Philippine Government maintains diplomatic relations; and
- (aj) persons authorized by the President of the Philippines for reasons of national interest.
Reduced rates for specified passengers
- Section 4 amends Section 2aA to impose reduced rates unless the passenger is exempt under Section 2.
- The reduced rates are:
- US$125.00 peso equivalent for first class passage; and
- US$75.00 peso equivalent for economy class passage.
- Reduced rates apply to:
- (a) individuals who are twelve years old or below but over two years of age;
- (b) those traveling under steerage class;
- (c) recipients of awards and grants from foreign governments, institutions and organizations, as certified to by the NEDA; and
- (d) those authorized by the President of the Philippines for reasons of national interest.
Reduced rates for contract workers
- Section 5 amends Section 2aB (as inserted by Batas Pambansa Blg. 38) to set reduced travel tax rates for specified contract workers.
- The reduced rates apply to:
- contract workers, their spouses, and dependents 21 years of age or below,
- provided they have approved employment contracts and are duly certified by the Ministry of Labor and Employment.
- The reduced travel tax rate is the peso equivalent of:
- US$60.00 for first class passage; and
- US$35.00 for economy class passage.
Repeal of inconsistent rules
- Section 6 repeals or modifies all laws, decrees, orders, and regulations, or parts thereof, that are inconsistent with Presidential Decree No. 1935.