LifeHack Lesson 3: Reduce Your Travel Tax

7:00 PM angeLjamie 0 Comments


Traveling is always a fun activity.  More so if you’re traveling to a different country with your love ones to meet familiar faces and places.  However, let’s face it apart from hounding the net for cheap flights, there’s almost no way in getting around the dreaded Philippine Travel Tax.

According to the TIEZA (Tourism Infrastructure and Enterprise Zone Authority), the travel tax is a levy imposed by the government of the Philippines, under Presidential Decree (PD) 1183, to all departing passengers.  The price depends on the type of ticket you purchase and only OFW (Overseas Filipino Workers) are fully exempted from paying the tax.  So yes, even you’re kids would need to pay up.



TRAVEL TAX RATES
FIRST CLASS PASSAGE
ECONOMY CLASS PASSAGE
Full Travel Tax
PHP 2,700.00
PHP 1,620
Standard Reduced Travel Tax
PHP 1,350.00
PHP 810.00
Privileged Reduced Travel Tax
for a Dependent of an
Overseas Filipino Worker (OFW)
PHP 400.00
PHP 300.00
 

But it’s not all pain.  The tax does go to worthwhile endeavors.  At least half of it.
TIEZA portions that money, with 50% going to TIEZA, 40% to the Commission on Higher Education (CHED) for tourism-related education programs and courses.  Lastly, the 10% goes to the National Commission for Culture and Arts (NCCA).

But if you’re a family of 4 going to see Mickey Mouse in Hong Kong, that P1,620 could easily balloon to P6,480—roughly the same price of one passenger ticket to Hong Kong and back.

So, I was very happy to know that I wouldn’t have to pay the full price.  Being an OFW dependent, my gang and I can avail the reduced price of P300.  An 80% decrease from the full price.

All OFW dependent can avail this privilege, even if you’re not travelling with the OFW.  As long as:
1.       Your destination is the same country where your OFW is deployed.
2.       You’re part of the OFW’s immediately family.
a.       Parents
b.      Spouse
c.       Children
3.       You have proof of family relation
a.       Original NSO copy of Marriage Certificate for Spouse
b.      Original NSO copy of Birth Certificate
4.       Proof of OFW deployment
a.       Copy of EOC, issued within a year
5.       Passport and Booking confirmation

To avail of the reduced travel tax, go to the TIEZA desk at the airport and submit all your documents.  Don’t worry about handing out your NSO files.  They will hand it back to you.  The most important part is the OEC of the OFW.  They should be registered and active in the POEA system.

Afterwards, you’ll be asked to pay P300 for each passenger.  A receipt and OFW dependent certificate would be given to you.  This you’ll present to the check in counter as proof of travel tax payment.

So next time you travel, don’t forget about this neat trick.  Go ahead and visit your OFW.

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