MANILA – The Department of Tourism (DOT) “wholeheartedly supports” the approval of Senate Bill No. 2415, with Senator Sherwin Gatchalian as principal sponsor and now adopted by the House of Representatives, which seeks to establish a value-added tax (VAT) refund mechanism for non-resident visitors.
In her Statement of Support, Tourism Secretary Christina Garcia Frasco commended both the Senate and House of Representatives for “recognizing the potential of this VAT refund system” as a way to encourage greater tourist spending.
“By allowing tourists to claim VAT refunds on locally purchased goods worth at least ₱3,000, this measure ensures that visitors have an additional incentive to purchase and bring home goods sold in the country and Filipino-made products, showcasing our local craftsmanship on the global stage,” Frasco said in her statement.
This is also timely as the projected increase of 29.8 percent in tourist spending, as estimated by the House Committee on Ways and Means, represents a “tremendous opportunity for growth in local businesses, especially micro, small and medium enterprises (MSMEs), and an increase in tourism employment,” Frasco emphasized.
She also shared that the Tourism department is aligned with the legislative intent to promote Filipino signature products such as Marikina shoes, barongs, and other traditional weaves, reinforcing the strong cultural identity of the country’s tourism offerings.
“This initiative, coupled with ongoing improvements in our tourism infrastructure and innovative tourism programs, will elevate the overall travel experience for our visitors and encourage longer stay and return visits,” the tourism chief explained.
Frasco then conveyed the department’s gratitude to the Senate and the House of Representatives “for their swift action on this vital legislation,” and mentioned that they are looking forward to its enactment upon the President’s approval.
“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 expounded.
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.
