The Department of Tourism (DOT) said Thursday it strongly supports the approval of Senate Bill No. 2415, which aims to establish a value-added tax (VAT) refund mechanism for non-resident visitors.
Tourism Secretary Christina Frasco described the legislation as a significant step towards enhancing the country’s attractiveness as a top-tier tourist destination, making the Philippines more competitive with its regional neighbors.
“We commend the Senate and House for recognizing the potential of this VAT refund system in stimulating increased tourist spending. By allowing tourists to claim VAT refunds on locally purchased goods worth at least P3,000, this measure provides visitors with an added incentive to purchase and bring home Filipino-made products, showcasing our local craftsmanship on the global stage,” she said.
Frasco said the projected 29.8-percent increase in tourist spending, as estimated by the House Committee on Ways and Means, represents a tremendous opportunity for growth in local businesses, particularly for micro, small, and medium enterprises (MSMEs) and an increase in tourism-related employment.
The DOT said it supports the legislation’s intent to promote signature Filipino products such as Marikina shoes, barongs and traditional weaves in reinforcing the strong cultural identity of the country’s tourism offerings.
The initiatives, together with ongoing improvements in tourism infrastructure and innovative programs, are expected to elevate the overall travel experience for visitors, encouraging longer stays and return visits.
“We echo the sentiment that this VAT refund program is not merely about immediate gains but a long-term investment in our tourism industry. As we continue to transform the Philippines into a tourism powerhouse, we believe that this measure will significantly contribute to our shared goal of a sustainable and globally competitive tourism sector,” Frasco said.
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