Airlines Ordered to Stop Collecting Travel Tax, Terminal Fees From Traveling OFWs

The Department of Labor and Employment has ordered airlines to halt collection of travel tax and terminal fees in ticket prices issued to overseas Filipino workers.

Labor Secretary Silvestre H. Bello III, in a letter to Director General Jim Sydiongco of the Civil Aviation Authority of the Philippines, said OFWs are exempted from paying travel tax and terminal fees based on Presidential Decree No. 1183 and RA 8042, or the Migrant Workers and Overseas Filipino Act of 1995, as Amended by RA 10022.

“It has come to my attention that the travel tax and terminal fees are being included in the cost of the airline tickets issued to our OFWs. While some OFWs were refunded of these fees at the airport prior to their departure, most of them, however, were not refunded because of lack of awareness about this privilege or lack of time to process their claim for refund,” said Bello.

He also requested the CAAP to remit the travel tax and terminal fees which were not refunded to the OFWs to the Overseas Workers Welfare Administration, an attached agency of the Department of Labor and Employment.

“Considering that the inclusion of these travel tax and terminal fees in the cost of tickets has been a practice of airline companies for several years, we request that the travel tax and fees collected from our OFWs which were not refunded to them be remitted to the OWWA,” said Bello.

The Labor Secretary also instructed the Philippine Overseas Employment Administration (POEA) and OWWA to coordinate with CAAP and MIAA on the immediate operationalization of a mechanism for automatic exemption of OFWs in payment of travel tax and terminal fee.

In his letter, which was copy furnished to Secretary Arthur Tugade of the Department of Transportation, General Manager Eddie V. Monreal of the Manila International Airport Authority (MIAA), and Atty. Guiller B. Asido of the Tourism Infrastructure and Enterprise Zone Authority, Bello requested the CAAP to make the necessary representation to concerned government offices in various airport terminals to cease and desist from collecting tax and terminal fees from OFWs.

Aside from the said government offices, the following airlines were also provided with the letter: Air Asia, Air Asia Zesr, Air China, Air Niugini, All Nippon Airways, Asiana Airline, Cathay Pacific, Cebu Pacific, Air China Airline, China Eastern Airline, China Southern Airlines, Delta Air, Dragon Air, Emirates Airlines, Ethiopian Airline, Etihad, Eva Air, Gulf Air, Japan Airlines, Jeju Air, Jet Star Asia, Jin Air, KLM Royal Duth Airlines, Kuwait Airlines, Malaysian Airlines, Mandarine Airlines, Oman Air, PAL Express, Philippine Airlines, Qantas Airlines, Qatar Airways, Royal Brunei, Saudia Airlines, Skyjet, Singapore Airlines, Silk Air, Thai Airways, Tiger Air, Tiger Airways, Turkish Airlines, United Airlines, and Xiamen Airlines.

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