Travel tax exemptions granted for for Mindanao, Palawan tourists going to 3 ASEAN countries

MANILA, Philippines — President Ferdinand Marcos Jr. has approved tax exemptions for travelers departing from Mindanao and Palawan and headed to Brunei Darussalam, Indonesia and Malaysia. 

The move is part of the Brunei Darussalam-Indonesia-Malaysia-Philippines- East ASEAN Growth Area (BIMP-EAGA) initiative, which is a partnership that aims to bolster development in select areas in each country. 

“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 are hereby exempt from payment of Travel Tax,” Marcos said in Memorandum Order 29, as released by the Manila Bulletin. 

According to the memorandum, the travel tax exemption also applies to passengers with confirmed connecting flights from Mindanao and Palawan to BIMP-EAGA areas within the same day, as long as there are no direct flights available from their point of origin within Mindanao and Palawan. 

“Unless sooner revoked, the Travel Tax Exemption shall be granted upon effectivity of this Order and until 30 June 2028,” the Memorandum Order read. 

Tourists can get their travel tax exemption from the Tourism Infrastructure and Enterprise Zone Authority. 

Brunei Darussalam, Indonesia, Malaysia and  Philippines are already co-members of the Association of Southeast Asian Nations but the BIMP-EAGA focuses on specific remote regions within the countries.  

Under the BIMP-EAGA, Mindanao and Palawan are the only areas included in the agreement. According to the Asian Development Bank, the agreement aims to increase not just tourism, but transe and investment as well.