MANILA – The Philippines has the potential to become Asia’s premier shopping destination, provided the government fully implements an electronic visa system and a value-added tax (VAT) refund scheme for foreign travelers, according to the administration’s economic czar.
At the National Retail Conference and Expo (NRCE) 2024 in Pasay City, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go emphasized the importance of these measures. “We need e-visas to attract global shoppers and simplify travel to the Philippines,” Go stated.
He also endorsed the Philippine Retailers Association (PRA) proposal for a VAT refund for non-resident tourists. “Most Asian countries offer VAT refunds for tourists; we currently do not. Implementing this would be crucial for our goal of becoming a shopping capital,” Go added. The proposed VAT refund could range from 60 to 90 percent, aligning with practices in other Asian nations.
PRA President Roberto Claudio supported the VAT refund proposal and highlighted its potential benefits. “Once implemented, tourists will likely stay longer, spend more, and explore additional attractions, greatly benefiting our economy,” Claudio said. He also called for the removal of the de minimis rule, which currently exempts low-value online shipments from customs duties, and urged swift action on the Internet Transactions Act to ensure fair competition between online and physical retailers.
Claudio emphasized that the retail sector contributes PHP750 billion annually to the economy and provides 5 million jobs for Filipinos. “Retail brick-and-mortar stores will continue to coexist with online platforms,” he concluded.
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