Instead of travel tax on economy passengers, luxury tax on 1st class sought

Following his proposal to spare travelers on economy class flights from paying travel tax, Senator Raffy Tulfo on Wednesday said he is seeking to have business and first class passengers pay luxury tax instead.

Interviewed on Unang Balita, Tulfo said that he wants the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to continue receiving proceeds from tax collections to develop tourism projects.

“Sa panukalang batas na aking binubuo o kina-craft, ang exempted lamang po sa pagbabayad ng tax ay ‘yung mga nasa economy class. Ngayon, ‘yung mga nasa business class at first class, itutuloy pa rin ‘yung pagbabayad nila pero hindi na [travel] tax ang tawag do’n, luxury tax na,” he said.

(In the bill that I am crafting, the only ones exempted from paying travel tax are those in economy class. Those in the business class and first class will continue to pay but it will no longer be called travel tax, but luxury tax.)

“Nang sa gayon, continuous pa rin ‘yung pagkita…kasi pupunta ito sa TIEZA eh at ‘yung TIEZA, dini-distribute ‘yan sa iba’t ibang sangay ng ating gobyerno bilang ayuda. Meron pa rin silang matatanggap na pera. ‘Yung magkukulang, pwede naman natin sigurong hanapan ng budget sa ibang departamento, ‘wag lang ma-violate ang batas,” he added.

(With this, we will continue collecting taxes. Part of it will go to TIEZA and will be distributed to various branches of the government as aid. They still get proceeds. If they lack funding, we can get a budget from other departments by not violating the law.)

TIEZA is a government-owned and controlled corporation (GOCC) attached to the Department of Tourism (DOT) and is responsible for implementing policies and programs of the DOT pertaining to the development, promotion, and supervision of tourism projects in the country.

Republic Act No. 9593 or the “The Tourism Act of 2009" states that 50% of the proceeds from travel tax collections shall accrue to the TIEZA.

The 40% shall accrue to the Commission on Higher Education (CHED) for tourism-related educational programs and courses, while the remaining 10% shall accrue to the National Commission for Culture and Arts (NCCA).

Tulfo, who chairs the Senate Committee on Public Services, earlier said that imposing the tax on economy class passengers was a violation of their constitutional right to travel.

He also called the travel tax as “anti-poor,” saying economy passengers will be able to save a bit for their travel if it is abolished.

‘Let it percolate’

At the Kapihan sa Manila Bay news forum on Wednesday, Finance Secretary Ralph Recto declined to comment on the proposal, saying that the proposed measure should run its course with lawmakers.

“It is not wise for me to comment on every suggestion. Let it percolate. Let it percolate sa pag-uusap na nila (in their discussions),” Recto said. —KG, GMA Integrated News