The Commission on Higher Education (CHED) is seeking a replacement revenue source amid the possible abolition of the travel tax following the approval of a related proposal by the House Committee on Tourism.
According to CHED Chairperson Shirley Agrupis, the move could result in the loss of 85.6% of the annual revenue of the Higher Education Development Fund (HEDF), since 40% of the travel tax is allocated to the fund under the Tourism Act of 2009.
Speaking at the House Committee on Ways and Means meeting, Agrupis stressed that such a loss would directly affect scholarships, research initiatives, institutional upgrading, and tourism education programs across the country.
Despite this, she clarified that CHED is not opposing the abolition of the travel tax, but is hoping for a substitute funding source that would continue supporting the commission’s programs.
CHED has also proposed several possible funding options, including an additional 4% share — or a total of 5% — from the Philippine Charity Sweepstakes Office (PCSO), as well as a mandatory contribution of at least 5% of the unimpaired surplus from Government Financial Institutions (GFIs) or Government-Owned and Controlled Corporations (GOCCs), or an automatic share appropriation from dividends remitted to the government.
