THE Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said the swift signing of the implementing rules and regulations (IRR) of the value-added tax (VAT) refund for foreign tourists highlights the speed of recent economic reforms.
“We were just here a month ago to finish up the IRR of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, so it’s great that we are moving at excellent speed,” according to Secretary Frederick D. Go, the head of the OSAPIEA at the signing of the IRR.
“Travelling Filipinos have experienced the VAT refund process when we go to many other countries, and I am so happy to see this become a reality,” he added.
On Monday, the Department of Finance, Bureau of Customs, and Bureau of Internal Revenue signed the IRR for Republic Act No. 12079, or the VAT Refund for Non-Resident Tourists.
The signing ceremony was also witnessed by Mr. Go and Tourism Secretary Ma. Christina Garcia-Frasco.
Under the IRR, foreign passport holders may apply for a VAT refund from accredited stores for locally purchased goods equivalent to at least P3,000.
It applies to clothing, apparel, electronics, gadgets, jewelry, accessories, souvenirs, food or non-food consumables, and other retail and tangible goods.
“This measure responds to the calls of tourism groups, further demonstrating our government’s commitment to listening to and addressing the needs of our stakeholders,” Mr. Go said.
“This will encourage more tourist spending, which means more revenue for stores, more jobs, and more growth for our economy, especially our artisans and businesses,” he added.
In January, revenue from tourism activities, products, and services hit P65.3 billion, up 78.8% year on year. — Justine Irish D. Tabile