No More “Processing Fee” on Travel Tax Exemption

The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) no longer charges “processing fee” for the issuance of certificates of Travel Tax Exemption and Reduced Travel Tax effective last July 25, 2016.

The processing fee of P200.00 imposed on those who are already exempted from or entitled to reduced travel tax rates is just an additional burden to the travelers, ” said Tourism Secretary Wanda Teo, also the chairman of the TIEZA Board.

“The removal of this processing fee shall also alleviate the situation of long lines at the TIEZA and travel counters at the airport. Those exempted from travel tax payments and those entitled to reduced rates will just have to present their documents to get the corresponding certificate of exemption or reduced travel tax rate,” Teo said.

In 2015, at least 738,734 passengers had to pay the P200.00 processing fee just to receive a certificate of exemption or entitlement to reduced travel tax rates.

The TIEZA Board decided to remove the P200.00 processing fee for the benefit OFWs and their dependents, balikbayans, and Filipino permanent residents abroad who come and stay in the country for less than one year.

“We will further review the Travel Tax System as the Philippines’ travel tax is already 60 years old. We would like to ensure a simplified and streamlined travel tax collection, and that its use shall be properly consistent with tourism development purposes,” Teo added. (DOT)