Bill seeks VAT rebate on visitors’ purchases
TO further boost visitor arrivals in the country, Senator Jinggoy Ejercito Estrada called for a value-added tax (VAT) refund mechanism for foreign tourists, allowing them to get a rebate of the 12% VAT on goods they bought from the Philippines, similar to the practice of other countries.
“Kung tataas ang benta ng mga locally made products, hindi lang ang mga MSMEs (micro, small and medium enterprises) ang makikinabang dito dahil kaakibat ng paglago ng negosyo nila ay ang pagbubukas o pagbibigay ng trabaho sa ating mga kababayan,” said Estrada, a labor advocate.
Estrada, chairperson of the Senate Committee on Labor, Employment and Human Resources Development, said under the bill, tourists shall be eligible for a VAT refund on goods costing at least P3,000 purchased from authorized retailers in the country, within 60 days from the date of purchase.
The value of goods per transaction should amount to at least P3,000 and the secretary of the Department of Finance, upon the recommendation of the secretary of the Department of Tourism and the commissioner of the Bureau of Internal Revenue, is authorized to adjust the threshold based on administrative costs of processing refunds, inflation, and other market conditions.
“Many studies have pointed out the multiplier effect of tourism. Direct spending may be a predominant contributor to GDP (gross domestic product), but indirect effects are also significant, suggesting a strong linkage with the local economy and in job generation,” Estrada said.
