Tourism Secretary Christina Garcia Frasco lauded both the Senate and the House of Representatives for adopting this legislation, emphasizing its role in enhancing the Philippines' competitiveness as a premier tourist destination.
The VAT refund program allows nonresident visitors to reclaim VAT on locally purchased goods worth at least ₱3,000, encouraging increased spending on Filipino-made products like Marikina shoes and traditional weaves.
In a statement, the DOT chief said the projected 29.8-percent rise in tourist spending, as estimated by the House Committee on Ways and Means, is expected to boost local businesses, particularly micro, small, and medium enterprises (MSMEs), and drive job creation within the tourism sector.
Frasco stressed that the measure is not just about immediate economic benefits but a long-term investment in the country’s tourism industry.
With a focus on promoting Filipino craftsmanship and improving overall visitor experiences, the VAT refund initiative aligns with the DOT’s broader goals of sustainable tourism development and transforming the Philippines into a global tourism powerhouse.
“We look forward to its enactment upon the President's approval. This VAT refund program is a testament to the government’s commitment to creating a welcoming and enriching environment for tourists while driving economic benefits for the Filipino people,” she added.
