Title
Reinstating Travel Tax Exemption for Mindanao and Palawan Travelers to EAGA
Law
Memorandum Order No. 73
Decision Date
Oct 24, 2014
The Philippine government reinstates the travel tax exemption policy for travelers from Mindanao and Palawan going to EAGA countries, allowing them to enjoy the exemption for three years by obtaining a Travel Tax Exemption Certificate from TIEZA.

Policy purpose and recommended basis

  • The order is issued for reasons of national interest.
  • The order is intended to sustain and accelerate economic development in Mindanao and Palawan.
  • The reinstatement is made as recommended by the House of Representatives pursuant to House Resolution No. 109 dated 11 June 2014.
  • The order reinstates an exemption from payment of travel tax for covered travelers.

Scope of coverage: who is exempted

  • The travel tax exemption applies to all travellers by air and/or sea originating from all international airports and/or ports in Mindanao and Palawan.
  • Covered destinations are any destination within the BIMP-EAGA (Brunei Darussalam, Indonesia, Malaysia, Philippines a East ASEAN Growth Area).
  • The exemption also covers passengers from anywhere in the Philippines bound for Brunei Darussalam, Indonesia, and Malaysia, provided they depart from international ports and airports in Mindanao and Palawan.
  • The exemption is conditioned on departure from the specified Mindanao and Palawan international airports/ports and travel to the specified EAGA/BIMP-EAGA destinations.

Travel tax exemption: what is granted

  • The order reinstates an exemption from payment of travel tax for the covered travelers described in its scope.
  • The exemption applies to travel by air and/or sea.
  • The exemption applies for journeys with the required origin and destination characteristics under the order.
  • The order reinstates the exemption policy that had previously been granted to the specified Mindanao and Palawan travelers bound for EAGA countries.

Duration and operational period

  • The travel tax exemption is granted for a period of three (3) years from the effectivity of the order.
  • The order’s immediate effectivity governs the start of the 3-year operational period for the exemption.

Certificate requirement and issuing agency

  • A Travel Tax Exemption Certificate may be secured for purposes of the order.
  • The certificate is secured from the Tourism Infrastructure & Enterprise Zone Authority (TIEZA).
  • TIEZA is identified as formerly the Philippine Tourism Authority.
  • The certificate is the mechanism contemplated for availing the exemption under the order.

Implementation, transitory, and mechanics

  • The order provides that the exemption is reinstated and applies as specified for covered travelers and routes.
  • The Travel Tax Exemption Certificate provides the means by which travelers may avail themselves of the exemption.
  • The order requires departure from international ports and airports in Mindanao and Palawan for the covered cases it describes.
  • The order applies through its certificate-based implementation using TIEZA for issuance.

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