By Liza Soriano
MANILA — Senators expressed confidence that implementing a Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists will significantly enhance the tourism sector.
Senate President Chiz Escudero noted that VAT refund programs are already standard practice in many countries.
“Providing VAT refunds on goods purchased by tourists is something that many countries around the world have been doing for years. The tourism sector is a consistent contributor to our economy, so an uptick in arrivals would boost our GDP and generate more jobs for our people,” Escudero stated.
“By offering VAT refunds for tourists, we are optimistic that we can entice more visitors to come to the Philippines, helping us compete with our Asian neighbors and positioning our country as a premier travel destination,” he added.
Senator Win Gatchalian, the sponsor and author of the measure, emphasized that the program will not only attract tourists but also encourage them to spend more on local products.
“We expect the increase in tourist arrivals to translate into employment opportunities across tourism-related industries such as hotels and hospitality, transportation, travel facilitation, and entertainment, among others, following the law signed by the President this morning in Malacañang,” Gatchalian said.
President Ferdinand “Bongbong” Marcos Jr. signed the measure into law on Monday, December 9, 2024. He highlighted that the law is also an opportunity to showcase the Philippines’ unique craftsmanship, particularly indigenous products from communities near tourist destinations.
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