President Rodrigo R. Duterte has exempted travelers going to any destination in the Brunei-Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA) from paying travel tax.
This after Executive Secretary Salvador Medialdea, by the authority of the President, signed Memorandum Circular No. 23, which was released by Malacañang on Thursday.
The memorandum order shall take effect immediately.
The order renews the travel tax exemption policy for travelers departing from all international airports and seaports in Mindanao and Palawan to any BIMG-EAGA destination.
This was signed “for reasons of national interest and in order to sustain and accelerate economic development in Mindanao and Palawan.”
It was also signed “as recommended by the House of Representatives pursuant to House Resolution No. 78 dated 06 December 2017.”
Under the memorandum order, the travel tax exemption shall be granted for a period of five years from the effectivity of the order.
Meanwhile, it also urged travelers to secure their travel tax exemption certificate from the Tourism Infrastructure and Enterprise Zone Authority.
It directs the National Economic and Development Authority, in coordination with all the relevant government agencies, to conduct an impact study on the implementation of the order and submit an annual report to the Office of the President to determine whether the exemption shall be continued or revoked.