Davao International Airport (Photo courtesy of City Government of Davao)
MANILA – President Ferdinand R. Marcos Jr. has granted travel tax exemption to all travelers departing from all international airports and seaports in Mindanao and Palawan who are bound for any East ASEAN Growth Area, including Brunei Darussalam, Indonesia, and Malaysia.
Based on Memorandum Order (MO) 29, inked by Marcos on Aug. 6 and published in local newspaper Manila Bulletin on Friday, the travel tax exemption will be granted upon effectivity of the order and until June 30, 2028, unless sooner revoked.
The travel tax exemption will be granted to passengers with confirmed connecting flights from Mindanao and Palawan to the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) within 24 hours on the same day.
Qualified travelers may secure travel tax exemption from the Tourism Infrastructure and Enterprise Zone Authority.
The exemption was granted to sustain and accelerate economic development in Mindanao and Palawan and encourage more investors to look at Philippine EAGA routes as potent connectivity and investment jump-off points.
”For reasons of national interest, in order to further sustain and accelerate economic development in Mindanao and Palawan, and as recommended by the House of Representatives pursuant to House Resolution No. 61 dated 21 March 2023, all travelers by air and/or sea departing from all international airports and/or seaports in Mindanao and Palawan, and who are bound for any destination in the BIMP-EAGA,” MO 29 read.
The granting of travel tax exemption is consistent with the strategies identified under the Philippine Development Plan 2023-2028, particularly relative to the promotion of tourism and reduction of barriers to trade and investment.
Various MOs were previously issued to grant a similar travel tax exemption to travelers from Mindanao and Palawan going to BIMP-EAGA destinations.
MO 29 takes effect immediately upon publication in the Official Gazette or newspaper of general circulation.
Accelerated growth
Meanwhile, the tax exemption is expected to accelerate the island's economic growth, according to Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno.
In a press briefing in Davao City Friday, Magno said the government is making every effort to restore the transportation of goods and people to and from BIMP-EAGA, which includes Palawan.
“We’re trying to revive interconnection to these countries. We already talked to two companies, and they signified that they are trying to revive the Manado–Mindanao flights,” he said, adding that three shipping companies would like to ply the Tawi-Tawi-Zamboanga routes.
Magno said transporting goods would be easy and a good investment opportunity for Mindanao and the country.
“What we are trying to do right now is to find exemptions, not only on these taxes. This is just the first step into finding other ways to minimize the travel cost or the cost of shipping products from the different areas of BIMP,” Magno said.
MinDA is working closely with agencies and partners to strengthen transportation in Mindanao and EAGA areas by reviving suspended flights and improving terminal facilities, he said.
“This move demonstrates the 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 said.
He said the sea links between Zamboanga and Sandakan are sustaining Mindanao’s existing direct transport link to EAGA, while the revival of direct flights between Davao and Manado, and the establishment of the proposed Zamboanga-Kota Kinabalu air link are currently being worked out. (PNA)
