Revive BIMP-EAGA travel tax exemption, Rody urged

Lawmakers are urging President Duterte to renew the travel tax exemption policy that covers all passengers departing from all seaports and airports in Mindanao and Palawan to any destination in the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMPEAGA).

Davao del Sur Rep. Mercedes Cagas led the filing of House Resolution 1270 to renew the travel exemption policy for a period of five years from 2017 to 2022.

“Among all the member-countries of BIMP-EAGA, only the Philippines collects travel tax for its outbound international travel which runs counter to the sub-regional objective of promoting the connectivity and accessibility of EAGA focus areas as well as facilitating freer movement of people, goods and services, “she said.

It was former President Fidel V. Ramos who issued the travel tax exemption policy in March 1995 to promote mobility of the people across the sub-regional areas and for the airline companies to open-up services within the Philippines EAGA. The policy was lifted in 1998. “For reasons of national interest and in order to sustain and accelerate economic development in Mindanao and Palawan, it is but imperative, reasonable and proper for the national government to approve the renewal of policy that grants travel tax exemption, “according to House Resolution 1270.

“The revenue loss from tax is insignificant when weighed against the actual and projected economic and social gains to Mindanao and Palawan, and the country as a whole, “it said.

Joining Cagas in filing the resolution are Palawan Rep. Gil Acosta, Iligan City Rep. Frederick Siao, Zamboanga del Norte Rep. Glona Labadlabad, Guimaras Rep. Lucille Nava and AMIN party-list Rep. Makmod Mending Jr.