TIEZA mulls foreign tourism tax
The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is considering imposing taxes on foreign tourists to secure funding for tourism infrastructure projects.
TIEZA chief operating officer Pocholo Joselito de Dios Paragas said the agency was looking to collect a $20 tourist development fund from foreigners visiting the country in lieu of the P1,620 travel tax being charged on Filipinos traveling abroad.
“We submitted it to the President and they are reviewing it. We also submitted a copy of our proposal to the Senate and the House of the Representatives,” Paragas said.
Under its proposal, Paragas said the proposed tourist development fund would be included in the airfare tickets.
Paragas cited Japan and the US, which collect $40 and $60 in tourism tax, respectively.
TIEZA is the agency mandated to ensure the timely collection of travel taxes.
Pursuant to Section 73 of The Tourism Act. half of the proceeds from travel tax collections shall accrue to the TIEZA while 40 percent goes to the Commission on Higher Education for tourism-related educational programs and courses, and the remaining 10 percent shall accrue to the National Commission for Culture and Arts.