The House Committee on Ways and Means chaired by Albay 2nd District Representative Joey Sarte Salceda approved the unnumbered substitute bill to House Bill 7143, creating a mechanism through which non-resident tourists may refund their value-added tax (VAT).
Salceda stressed that the measure is long overdue, noting that the Philippines is the only country in Asia that does not have a tourist VAT refund system.
“We expect domestic sales to tourists to increase by 30% when the measure is enacted into law.”
The veteran legislator expects domestic sales to tourists increasing by 30 percent when the measure is enacted into law.
Senior Vice Chairperson Representative Mikaela Angela Suansing (1st District, Nueva Ecija), also an author and head of the technical working group on HB 7143, saw the tourist incentive envisioned in the bill helping stimulate the country’s tourism and trade, making the country more competitive and boosting the profitability of local businesses.
Other authors of the measure are Representatives Alfelito Bascug (1st District, Agusan del Sur) and Milagros Aquino-Magsaysay (Party-list, United Senior Citizens).
“Tourist spending is estimated to increase from P10.6 billion to P42.3 billion within a year after the bill is enacted into law and implemented.”
Suansing estimated tourist spending to increase from P10.6 billion to P42.3 billion within a year after the bill is enacted into law and implemented.
The bill, as amended, entitles tourists to a refund of the VAT paid for goods purchased worth at least P3,000 per transaction from accredited retailers.
It defines a tourist as “a foreign passport holder, who is a non-resident individual not engaged in trade or business in the Philippines.”
