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President Ferdinand Marcos, Jr. has extended until June 2028 the period of travel tax exemption for travelers to the Brunei-Indonesia-Malaysia-the Philippines-East ASEAN Growth Area sub-region
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Memorandum Order No. 29 extends the period of exemption from payment of travel tax to all EAGA-bound passengers originating from international airports or seaports in Mindanao and Palawan
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The exemption from payment of travel tax amounting to about P1,600 started in 1995 as a policy modification initiative of the government in support of BIMP-EAGA, and has since been renewed
President Ferdinand Marcos, Jr. has extended until June 2028 the period of travel tax exemption for travelers to the Brunei-Indonesia-Malaysia-the Philippines-East ASEAN Growth Area (BIMP-EAGA) sub-region, according to the Mindanao Development Authority (MinDA).
Marcos on August 6 signed Memorandum Order (MO) No. 29, which extends the period of exemption from payment of travel tax to all EAGA-bound passengers originating from international airports or seaports in Mindanao and Palawan.
“The travel tax exemption also applies to passengers with confirmed connecting flights from Mindanao and Palawan to BIMP-EAGA within 24 hours on the same day, and when no direct flights are available from the passenger’s point of origin in Mindanao and Palawan to any point of destination in BIMP- EAGA,” MO 29 said.
The tax exemption extension underscores the importance of accelerating the economic growth of Mindanao and Palawan as focus areas of the BIMP-EAGA and in the greater context of ASEAN integration, according to MinDA chairperson and Philippine signing minister for BIMP-EAGA Leo Tereso Magno.
“This move clearly demonstrates strong commitment of the Marcos administration to Mindanao’s progress and transformation, even as we continue to push for major strategic initiatives to reinvigorate the sub-regional grouping,” Magno added.
He also stressed that MinDA—which serves as the coordinating office for BIMP-EAGA—is working in close collaboration with key agencies and development partners for the strengthening of transportation linkages by reviving suspended flights between Mindanao and EAGA areas, supporting existing and proposed air and sea linkages as well as improvement of terminal facilities in Mindanao ports and airports.
The exemption from payment of travel tax amounting to about P1,600 started in 1995 as a policy modification initiative of the government in support of BIMP-EAGA. The exemption was renewed several times but discontinued in 2008 through 2014, the year the exemption was renewed for three years. The exemption expired in October 2017 and was renewed in 2018 for five years.
In March last year, the House of Representatives endorsed the travel tax exemption by adopting House Resolution No. 61, authored by Sultan Kudarat representative Princess Rihan Mangudadatu Sakaluran, who is chair of the Special Committee on EAGA Affairs and a member of the MinDA Board.
“This is certainly a welcome development for the private sector which has been regarded as the engine of growth the BIMP-EAGA initiative,” says Joji Ilagan Bian, chair of the Philippine Chamber of Commerce and Industry (PCCI) Committee on BIMP-EAGA.
Mindanao’s existing direct transport link to EAGA is being sustained by sea links between Zamboanga and Sandakan in Malaysia, while revival of direct flights between Davao and Manado and the establishment of proposed Zamboanga-Kota Kinabalu air link are currently being worked out.
Formed officially in 1994 under the initiative of the Philippine government, BIMP-EAGA is an economic complementation of regional areas of the four participating countries and is aimed at stimulating growth within the sub-region.
