In In order to attract more visitors to the country, Philippines’ President Ferdinand Marcos has approved a value-added tax (VAT) return scheme for international tourists by 2024, stated the Philippine Presidential Communications Office (PCO).
On items consumed within the Southeast Asian country, the government levies a 12% VAT. The goal is for foreigners to be able to obtain a VAT refund on things they take out of the Philippines, just like what many other nations do.
The policy is one of many ideas submitted to Marcos recently by a private sector advisory committee to promote the tourist industry, including enhancing airport infrastructure and operations and increasing tourism investment, according to the PCO.
According to the report, Marcos has also approved the implementation of an online visa for Chinese, Indian, South Korean, and Japanese travelers this year.
The Department of Tourism disclosed the Philippines had 2.65 million overseas visitors last year, bringing in an estimated $3.68 billion in revenue, surpassing its 2022 target of 1.7 million tourists.
Last year’s number included 2.02 million foreign nationals and 628,445 Filipinos living abroad, compared to just 163,879 visitors reported in 2021, and it is still much lower than the 8.26 million pre-pandemic yearly average.