MANILA — The Commission on Higher Education (CHED) is seeking the creation of a trust fund account with the Bureau of Treasury (BTr) amid the possibility of the abolition of travel tax, according to the Department of Finance’s budget sponsor, Lanao del Sur 1st District Representative Zia Alonto Adiong.
Adiong confirmed on Friday that CHED wrote to the DOF asking them to establish the trust fund to support the needs of CHED.
“This is in relation to the travel tax– so they’re requesting in lieu of that, can the Department of Finance create a trust fund for this specific collection from the travel tax be used to support CHED? [...] So with the abolition of the travel tax, ang hinihingi po ng CHED, according to this letter, kung pupuwede pong magkaroon ng support,” Adiong said.
Adiong added that in the letter, CHED cited RA 7722 on the Higher Education Development Fund (HEDF), which benefits from travel tax contributions.
The same law says that government financing institutions identified and requested by CHED may contribute to the fund three to five percent of their unimpaired surplus realized during the immediately preceding year.
Reading from the letter, Adiong said, “Remittances from government financial institutions under Section 10, Paragraph B… government financing institutions identified and requested by the commission may contribute to the fund an amount equivalent to not less than three percent, but not more than percent percent of the unimpaired surplus realized during the immediately preceding year.”
“Further, Section 73 of Republic Act No. 9593 provides that the national government shall look for alternative funding sources for programs funded by the travel tax in the event of a phaseout of travel tax collection following the international agreements. Opening and management of trust fund, they are requesting in relation to the receipt of the aforementioned GFI contributions and other sources specified under Section 10 of RA 7722, we seek guidance on establishment and operation of a dedicated trust fund account with the Bureau of Treasury,” Adiong said during plenary deliberations on the DOF’s budget.
The House of Representatives earlier approved a measure to remove travel tax with the Senate saying it will prioritize such a bill this year.
Senate eyes abolishing travel tax this year
CHED also earlier said that travel tax contribution to Higher Education Development Fund (HEDF) for scholarship programs and other initiatives from 1995 to 2025 was at around P24.1 billion.
CHED asks for other funding source should travel tax be abolished
BH party-list Representative Robert Nazal also questioned the DOF over a section of RA 7722 saying the commission is to appoint a government financial institution as portfolio manager of the HDEF.
Nazal added, the DOF should intervene to help CHED comply with the law.
“What I'm asking basically is how do we intend to comply with the law considering po na mayroon pang pera under the HEDF? So the money should supposedly be in a GFI– in a government financial institution in compliance with the law. Mayroon pa rin pang pera from the travel tax na nakuha ang HEDF. So ang tinatanong ko po, are we going to comply with that?” Nazal asked.
Adiong vowed to comply with the law, adding the DOF will sit down with CHED on the letter sent and provisions of the law cited. “It is the CHED that actually should administer the funding, and they should also appoint and then decide who will be the manager,” Adiong said. “We will just have to coordinate with the Commission on Higher Education. But definitely once there will be a set-up schedule for specific coordination, I can guarantee to you as a sponsor of their budget, I will ask the DOF to inform,” Adiong added.