The Philippines has introduced a new VAT refund program for foreign tourists. The move is designed to attract more international visitors and boost retail spending. The government hopes this will position the country as a top shopping destination in Southeast Asia.
Under the new law, tourists can claim refunds on the 12% Value-Added Tax (VAT) for eligible purchases. The refund applies to goods bought from accredited stores and taken out of the country within 60 days. To qualify, shoppers must spend at least PHP 3,000 (around $50) in a single store.
Officials say the program will make shopping in the Philippines more appealing. It brings the country in line with popular shopping destinations like Thailand and Singapore, which already offer similar schemes. The government expects the policy to increase tourist spending and support local businesses.
The VAT refund system will be rolled out in phases. Major cities like Manila, Cebu, and Davao will be the first to implement it. Authorities are working with retailers to ensure a smooth process for tourists.
Tourism leaders welcome the move. They believe it will help the Philippines compete for high-spending travelers. The country has been working to revive its tourism sector after the pandemic. This new incentive could give it an edge in the region.
The program is part of a broader strategy to strengthen the economy. By encouraging shopping tourism, the Philippines aims to create jobs and grow its retail sector. If successful, it could become a key shopping hub in Asia.
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