Tax-Free Travel: Mindanao and Palawan Tourists Exempt from Fees to 3 ASEAN Countries

President Ferdinand Marcos Jr. has approved the tax-free travel from Mindanao and Palawan to three key Southeast Asian nations: Brunei Darussalam, Indonesia, and Malaysia. The initiative, effective until 30 Jun 2028, is part of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) agreement, which focuses on boosting development in select remote regions of these countries.

Also read: Canada Eases Mindanao Travel Restrictions: Good News for Travellers!

What to expect with the tax-free travel from Mindanao and Palawan to three Southeast Asian countries

In a memorandum released by the Presidential Communications Office, Marcos declared that travellers departing from international airports and seaports in Mindanao and Palawan and bound for any destination within the BIMP-EAGA region will no longer need to pay the travel tax. This applies to both air and sea travellers, offering a significant incentive for tourists and business travellers alike.

The travel tax exemption also extends to those with connecting flights. If a tourist from Mindanao or Palawan has a confirmed connecting flight to any BIMP-EAGA destination on the same day and no direct flights are available, they will still qualify for the exemption. This measure is designed to encourage more seamless travel and increase accessibility between these regions.

President Marcos highlighted that the goal of this tax exemption is not only to enhance tourism but also to promote economic growth through trade and investment in these underdeveloped regions. The BIMP-EAGA initiative, established in 1994, aims to strengthen ties between the four nations by focusing on regions that may not be fully integrated into the larger ASEAN economic framework.

The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) has been designated to handle the processing of travel tax exemptions. Tourists who qualify for the exemption can reach out to TIEZA for the necessary documentation before their trip.

Also read: Palawan and Boracay Among Asia's Most Visited Islands in 2024

While Brunei Darussalam, Indonesia, Malaysia, and the Philippines are all members of the Association of Southeast Asian Nations (ASEAN), the BIMP-EAGA initiative specifically targets remote areas within these countries to encourage development. In the Philippines, Mindanao and Palawan are the two regions included in the agreement, and this latest measure is seen as a way to enhance connectivity and foster growth in these areas.

For those planning trips to Brunei, Indonesia, or Malaysia, this travel tax exemption is a welcome development, offering both savings and easier access to these neighbouring destinations.

Featured image credit: Leonid Andronov | Canva Pro