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E-visa, VAT refund for tourists to back PH as Asia’s shopping hub


MANILA: It is ‘never too late’ for the Philippines to become the shopping hub in Asia if the government will fully implement an electronic visa system and value-added tax (VAT) refund scheme for foreign travelers, the administration’s economic czar said.

On the sidelines of the National Retail Conference and Expo (NRCE) 2024 in Pasay City Thursday, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go told reporters that the country always has the potential to be the ‘shopping capital in Asia.’

‘We need e-visas to become a shopping capital. That means you’re attracting visitors from all over the world to come here and enjoy shopping. So we need e-visas. We need to make it easier for travelers to come to the Philippines,’ Go said.

He also supports the proposal of the Philippine Retailers Association (PRA) to implement VAT refund for non-resident tourists.

‘(P)ractically, every country in Asia has a VAT refund for tourists; we don’t. So if we, indeed, want to become a
shopping capital of Asia or of the world,’ Go said.

He said the Philippines may refund 60 to 90 percent of the VAT to foreign tourists, guided by the range of VAT refund given by other Asian countries.

‘We need to have those two as basic. These are what you call very basic, very fundamental to becoming a shopping capital,’ he said.

One of the proposals of PRA president Roberto Claudio to support the growth of the country’s retail sector is the VAT refund.

‘So we requested this, and it’s now going through the grind at the Senate, and the House of Representatives way back last year. So I’d like you all to start preparing for this, because once this is signed by the President, they will stay longer, they will eat more, they will look for more attractions to visit. So, the overall benefit to the economy is going to be enormous, and retailers should be the first ones to be in the frontline,’ Claudio said in his speech at the NRCE 2024.

Aside from the VAT refund scheme, Claudio said the PRA is pushing for the
removal of the de minimis rule, which exempts online shipments from customs duties if they are below a certain value.

He also urged the government to swiftly implement the Internet Transactions Act to level the playing field between online merchants and the brick and mortar retailers.

‘The word is omni-channel… There is not going to be any retail apocalypse. Hindi mamamatay ang retail brick and mortar. (Retail brick and mortar will not die). Yes, we will co-exist,’ Claudio said.

He said the retail sector has an average contribution to the economy of PHP750 billion annually, providing 5 million jobs for Filipinos.

Source: Philippines News agency