Marcos OKs VAT Refund Program for foreign tourists by 2024

President Ferdinand “Bongbong” Marcos Jr. has approved the implementation of the Value-Added Tax (VAT) Refund Program for foreign tourists by 2024 in a bid to boost tourist arrivals in the Philippines.

Based on information given by the Presidential Communications Office, the President made the move upon the recommendation of the Private Sector Advisory Council (PSAC) tourism sector group.

Marcos is set to issue an executive order to implement the tax refund program, which is also being carried out in other countries, according to Palace officials.

PSAC presented its “Quick Wins” proposals to Marcos on Thursday, aiming to further boost the country’s tourism industry, including improving airport infrastructure and operations, managing the national brand and image, and promoting tourism investments, among others.

Aside from the VAT Refund Program for foreign tourists, other PSAC Quick Wins proposals approved by Marcos were the extension of e-visas for Chinese, Indian, South Korean, and Japanese nationals; and the removal of One Health Pass or requirement of one form only for health, immigration, and customs.

The revocation of outdated advisories and loudspeaker announcements in the country’s airports and the automatic inclusion of travel tax in all airline tickets were also included in PSAC’s suggestions.

PSAC officials also informed Marcos that they are working on a mobile app called “e-Travel,” which integrates all of the information on immigration, customs, health, and quarantine.

This app, which could be deployed within the month or in February, is being modified to allow groups or families for easy data input. Its database will also feature tourist destinations, transport and hotel information, and traffic conditions in the country.

Tourists would be able to complete the form through the app before boarding or while onboard the plane as long as they have Wi-Fi connection.

With this, Marcos underscored the importance of digitalization, which, he said, could allow tourists to easily fill out forms while traveling and enable authorities to ensure security at the borders at the same time.

The Department of Tourism (DOT) bared earlier this month that a total of 2.6 million tourists arrived in the Philippines in 2022 amid the pandemic. Some P173 billion tourism revenue was also recorded last year.

This year, DOT is eyeing 4.8 million visitors, which could generate P2.58 trillion in revenue. —Giselle Ombay/KG, GMA Integrated News