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Hommittee on Ways and Means chairperson and Albay 2nd district Rep. Joey Salceda said he will push the House of Representatives to adopt the proposed Senate measure that seeks to implement a value added tax (VAT) refund mechanism for tourists to encourage spending.

“This was a direct instruction from President Marcos. So, no more delay from our end,” Salceda said in a statement.

The veteran lawmaker says the Senate Bill (SB) No. 2415—which embodies the VAT refund—is largely based on House Bill (HB) No. 7292 that he principally authored.

“We are very amenable to the Senate version, which doesn’t really deviate much from the House version,” he added. He said he will recommend such to Speaker Martin Romualdez.

Under the measure, purchases from government-accredited stores worth at least P3,000 and taken out of the country within 60 days of purchase will be allowed a VAT refund.

SB No. 2415 allows the refunds to be made either electronically or in cash.

“Together with more modern airports and investments in the hospitality sector, we hope that the VAT refund for tourists will boost the country’s bid for more tourist dollars,” Salceda said.

The Bicolano said the measure is part of a “comprehensive strategy” to bolster tourism. This is in addition to the anticipated improvements with the Ninoy Aquino International Airport (NAIA) due to its privatization, as well as the soon-to-rise Bulacan International Airport.

“And now, we want foreign tourists to spend more here,” he added.

Salceda insisted that foreign tourists should not be charged with VAT if they consume purchased goods in their home countries.

“Any well-travelled Filipino knows that one of the draws of touring abroad is that one can shop tax-free, with very efficient refund systems in places like Singapore and Japan,” he pointed out.

Salceda, an economist, said the measure will approximately increase tourist sales in the country by P17.6 billion. This represents a growth of 29.8 percent, based on a simulated model.

“Of course, this strategy needs to be coupled with intensified efforts to encourage tourists to buy local Filipino signature products, such as shoes from Marikina or our barongs and our weaves,” the congressman noted.

With this, he aims to work with the Creative Industries Council to see how the country can maximize this opportunity for local creatives and artisans.