Manila Bulletin
Philippines
National
VAT refund for foreign tourists also aims to make PH a shopping destination—Gatchalian
Philippines
National
VAT refund for foreign tourists also aims to make PH a shopping destination—Gatchalian
VAT refund for foreign tourists also aims to make PH a shopping destination—Gatchalian
Published Jun 18, 2023 03:26 am
Senator Sherwin Gatchalian said he is optimistic that the Philippines has the potential to boost its reputation as a shopping destination.
Sen. Sherwin Gatchalian (Senate PRIB Photo)
This, once the proposed measure providing a value added tax refund scheme for foreign tourists is enacted into law. “Actually, we are not known as a shopping destination. The Philippines is known for its nice beaches, diving spots but not as a shopping haven,” Gatchalian said in an interview on DWIZ on Saturday, June 17. State economic managers are also optimistic that the full refund policy will generate an additional P8.6-billion to P12.8-billion to the Gross Domestic Product (GDP) annually from 2024 to 2028. Lawmakers are also expecting the measure to increase the promotion of Philippine or locally-made products. “So that is one of the things we need to focus on because that is additional revenue for all. We want to give emphasis on our own products so that our local manufacturers will also benefit from this,” Gatchalian said. The measure, he said, also seeks to encourage local retailers to prepare for a better presentation of their products. “I believe that if we do this, we would attract more tourists to buy our own products. But I also see the need to make sure our products are also attractive. The quality, presentation and packaging should be nice so we can take advantage and convince tourists to buy),” he said. “We want to put that into the proposed law, to prioritize and give emphasis on local products. It shouldn’t just be high-end goods, but our local products also,” added the senator. According to Gatchalian, the Philippines is the only country in Southeast Asia without a VAT refund for tourists. Thus, he said, passage of the measure into law would be a great way to also revive the country’s economy which was ravaged by the global Covid-19 pandemic. “I also think it is a good timing to pass this into law since now we have what we call ‘revenge traveling,’ because after the pandemic, almost everyone now wants to travel,” Gatchalian noted. “It’ll be good if we ride on this wave of revenge traveling because many foreigners now go to travel and many of them want to visit our country. So this is an added attraction,” he said.
Sen. Sherwin Gatchalian (Senate PRIB Photo)
This, once the proposed measure providing a value added tax refund scheme for foreign tourists is enacted into law. “Actually, we are not known as a shopping destination. The Philippines is known for its nice beaches, diving spots but not as a shopping haven,” Gatchalian said in an interview on DWIZ on Saturday, June 17. State economic managers are also optimistic that the full refund policy will generate an additional P8.6-billion to P12.8-billion to the Gross Domestic Product (GDP) annually from 2024 to 2028. Lawmakers are also expecting the measure to increase the promotion of Philippine or locally-made products. “So that is one of the things we need to focus on because that is additional revenue for all. We want to give emphasis on our own products so that our local manufacturers will also benefit from this,” Gatchalian said. The measure, he said, also seeks to encourage local retailers to prepare for a better presentation of their products. “I believe that if we do this, we would attract more tourists to buy our own products. But I also see the need to make sure our products are also attractive. The quality, presentation and packaging should be nice so we can take advantage and convince tourists to buy),” he said. “We want to put that into the proposed law, to prioritize and give emphasis on local products. It shouldn’t just be high-end goods, but our local products also,” added the senator. According to Gatchalian, the Philippines is the only country in Southeast Asia without a VAT refund for tourists. Thus, he said, passage of the measure into law would be a great way to also revive the country’s economy which was ravaged by the global Covid-19 pandemic. “I also think it is a good timing to pass this into law since now we have what we call ‘revenge traveling,’ because after the pandemic, almost everyone now wants to travel,” Gatchalian noted. “It’ll be good if we ride on this wave of revenge traveling because many foreigners now go to travel and many of them want to visit our country. So this is an added attraction,” he said.