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.