In a statement released by the Department of Tourism (DOT), Tourism Secretary Christina Garcia Frasco expressed full support for the approval of Senate Bill No. 2415, which seeks to establish a value-added tax (VAT) refund mechanism for nonresident visitors. The bill, sponsored by Senator Sherwin Gatchalian and now adopted by the House of Representatives, aims to boost tourist spending and enhance the Philippines’ appeal as a premier tourism destination.

Secretary Frasco commended the Senate and House for recognizing the potential of the VAT refund system in encouraging greater tourist spending. The legislation allows tourists to claim VAT refunds on locally purchased goods worth at least ₱3,000, providing an incentive for visitors to purchase and bring home Filipino-made products.

The DOT believes that the projected increase of 29.8% in tourist spending, as estimated by the House Committee on Ways and Means, will benefit local businesses, especially micro, small, and medium enterprises (MSMEs), and lead to an increase in tourism employment.

Secretary Frasco emphasized that the VAT refund program is a long-term investment in the tourism industry and will contribute to making the Philippines a tourism powerhouse. The DOT is grateful for the swift action taken by the Senate and the House of Representatives on this vital legislation and looks forward to its enactment upon the President’s approval.

The VAT refund program is seen as the government’s commitment to creating a welcoming environment for tourists and driving economic benefits for the Filipino people. This initiative is expected to further strengthen the country’s position as a competitive tourism destination.