E-visa, VAT refund scheme seen crucial for PHL ambition to become ‘shopping capital’
E-VISA and value-added tax (VAT) refunds for international visitors will help establish the Philippines as a shopping destination, Secretary Frederick D. Go said.
Mr. Go, who heads the Office Special Assistant to the President for Investment and Economic Affairs, said: “I think we always have that potential to be a shopping capital in Asia. But we need two things — e-visas … (to) make it easier for travelers to come to the Philippines (and) VAT refunds for tourists. Because practically every country in Asia has a VAT refund and we don’t.”
He was speaking to reporters on the sidelines of the National Retail Conference and Expo on Thursday.
“So if we indeed want to become a shopping capital of Asia or of the world, we need to have those two (which are) very fundamental to becoming a shopping capital,” he added.
Aside from attracting tourists, Mr. Go said that the VAT refund scheme may also persuade more luxury brands to come into the Philippines.
Philippine Retailers Association President Roberto S. Claudio said a VAT refund scheme for tourists will not only boost retail sales but also increase tourism revenue.
“This is where we incentivize tourists and note that the second biggest expense of tourists is shopping,” he said.
“Majority of the tourists come to visit the country not just for the attractions or the resorts or diving or food, but they all shop before they go,” he added.
He said that the measure on tax incentives for tourists is now in the Senate. The House approved its version of the bill last year. Senate Bill No. 2415 aims to provide nonresident tourists with VAT refunds on purchases worth at least P3,000 to encourage more visitor spending.
“I’d like all retailers to start preparing for this, which, once signed by the President, will boost tourist arrivals,” Mr. Claudio said.
“The overall benefit to the economy is going to be enormous, and we retailers will be the first ones to be in the front line,” he added.
Asked about the prospect of catching up with the early implementers of the VAT refund, Mr. Claudio said: “People travel every day, every week, every month; you never miss the boat.”
“They were ahead of us in doing this. But it’s never too late because the people who traveled there last year can travel to the Philippines next year,” he added.