Senator Win Gatchalian said that the enactment of the measure providing for a Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists is expected to boost tourist arrivals beginning next year. 

“We expect the increase in tourist arrivals to translate into employment opportunities across tourism-related industries such as hotels and hospitality, transportation, travel facilitation, and entertainment, among others, following the law signed by the President this morning in Malacañang,” said Gatchalian, the sponsor and author of the measure. 

According to him, the measure is meant to support the current administration’s efforts to boost tourism in the country. “By allowing foreign visitors to claim VAT refunds on goods they purchase in our country, we create an environment that not only attracts more tourists but also encourages them to spend more on our products, which will eventually be taken out of the country,” explained Gatchalian, chair of the Senate Committee on Ways and Means. 

He emphasized that any revenue loss that the government will incur from the VAT refund will be compensated by economic activities that the measure is expected to generate. “The measure is about the long-term growth of our tourism industry and economy as a whole,” he said.  The Bureau of Internal Revenue (BIR) collects a 12% VAT on goods sold in the country.  

The lawmaker said an increase in spending by tourists is expected to generate more jobs, stimulate local industries, and boost economic growth. 

“This law is not just about short-term gains but about the long-term growth of our tourism industry and economy as a whole,” Gatchalian emphasized, citing projections made by the National Economic and Development Authority (NEDA) that the fiscal reform would generate P3.3 billion to P5.7 billion pesos in tourism revenue per annum.  

“Ang batas na ito ay isang pamumuhunan sa ating sektor ng turismo at sa pamamagitan nito ay magkakaroon ng oportunidad ang marami sa ating mga kababayan,” he added.