Philippines to offer VAT refund to foreign tourists by 2024
A fire dancer performs for tourists, who are wearing masks for protection against the coronavirus disease (COVID-19), on Boracay Island, Aklan province, Philippines, December 1, 2021. REUTERS FILE PHOTO
MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. has approved a value-added tax refund program for foreign tourists by 2024 to attract more visitors, the Presidential Communications Office (PCO) said on Sunday.
The government collects a 12% VAT on goods consumed within the Southeast Asian country. The plan is to allow foreigners to get a VAT refund on items they are taking out of the Philippines, similar to what many other countries offer.
The measure is among the proposals a private sector advisory council presented to Marcos recently to boost the tourism industry, including improving airport infrastructure and operations and promoting tourism investment, the PCO said in a statement.
Marcos has also approved the launch of an online visa this year for Chinese, Indian, South Korean and Japanese tourists, it said.
The Philippines recorded 2.65 million international visitors last year, who brought in an estimated $3.68 billion in revenue, exceeding its 2022 target of 1.7 million tourists, according to the Department of Tourism.
Article continues after this advertisementLast year’s total comprised of 2.02 million foreign nationals and 628,445 Filipinos based abroad, which compared with only 163,879 tourists recorded in 2021 and was still significantly lower than the pre-pandemic annual level of 8.26 million.
Article continues after this advertisementThe government aims to boost visitor arrivals this year to 4.8 million tourists.
