President Ferdinand Marcos Jr. signed Republic Act (R.A.) 12079, known as the “VAT Refund for Non-Resident Tourists,” during a ceremonial signing recently at Malacañan Palace.
In his speech, the President emphasized the significance of the law, stating that “shopping has become an essential part of the travel experience”.
Marcos noted that in 2023, the Philippine tourism sector played a crucial role in the nation’s economic recovery, contributing an impressive 8.6 percent to the GDP.
“Within this significant share, shopping emerged as the second largest expenditure for inbound tourists. With this in mind, we are introducing the VAT refund program for non-resident tourists—designed not only to stimulate more spending but to promote the Philippines as a premier global shopping destination,” he said.
“This initiative opens a new chapter in our tourism landscape.”
“This initiative opens a new chapter in our tourism landscape, allowing the country to compete with other tourism markets that attract tourists who are eager to take home authentic, high-quality Filipino products,” Marcos added.
The President highlighted the country’s unique handcrafted items, saying: “Our signature products such as the Marikina shoes, the intricate handwoven textiles from the northern provinces, [and] the timeless craftsmanship of Filipino barongs all stand to benefit from this measure. These products tell our stories, and now, with the VAT refund, they will be able to be more accessible to global consumers, elevating once again our stature in the global market.”
With a projected 30 percent surge in tourist spending, he noted the benefits for both large-scale industries and micro, small, and medium enterprises (MSMEs), which are vital to the local economy.
“Tourists who have a positive shopping experience are more likely to return—with their friends and their families—supporting our goal to become a premier shopping destination in Southeast Asia,” Marcos stressed.
The President concluded by urging the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) to develop Implementing Rules and Regulations (IRR) that will make the law “simple, accessible, and culturally inclusive.”
Witnessing the signing were Senate President Chiz Escudero, House Speaker Martin Romualdez, senators, members of the House of Representatives, Cabinet member including Tourism Secretary Christina Garcia Frasco.
“This not only elevates the country’s competitiveness as a premier destination in Asia but also adds significant value to the overall visitor journey.”
“The passage of the VAT Refund Law for tourists marks a monumental shift in the way we enhance the Philippine tourism experience. This not only elevates the country’s competitiveness as a premier destination in Asia but also adds significant value to the overall visitor journey,” Frasco said.
“By allowing tourists to enjoy tax refunds on their purchases, we send a strong message that the Philippines is ready to embrace global standards while supporting local industries and businesses. This law is more than an economic incentive; it is an invitation for the world to experience the creativity, craftsmanship, and hospitality that make our nation unique. We applaud our President and the Legislature for this forward-thinking legislation, which strengthens our commitment to making the Philippines a more accessible and attractive destination for the global traveler,” the tourism chief stressed.
R.A. 12079 harmonizes Senate Bill No. 2415 and House Bill No. 7292. During the same ceremony, the President also signed two other landmark legislations: the Amendments to the Agricultural Tariffication Act and the Basic Education Mental Health and Well-being Promotion Act.
