Synopsis: The Philipines government was charging around 12% VAT on the consumption of goods within the radius of Southeast Asian countries. But now, the government is now announcing a VAT refund on goods they are taking out of the country. This new plan is introduced to match up with the pace of what other countries are offering.
The new tax is introduced to boost tourism in the country. A new tax-related initiative has been unveiled by the Philippines to encourage travel to the nation. According to news reports, in an effort to increase tourism, President Ferdinand Marcos has approved a value-added tax return program for foreign visitors by 2024. The Presidential Communications Office stated the same (PCO).
The Philipines government was charging around 12% VAT on the consumption of goods within the radius of Southeast Asian countries. But now, the government is now announcing a tax refund on goods they are taking out of the Philipines. This new plan is introduced to match up with the pace of what other countries are offering.
According to a statement from the PCO, the recommendation was one of many that a private sector advisory council gave to Marcos to help the tourist sector, along with suggestions for bettering airport operations and infrastructure as well as encouraging investment in the sector. There are many best places to visit in the Philippines.
According to sources, Marcos has also given the go-ahead for the implementation of an online visa this year for visitors from China, South Korea, India, and Japan.
With the opening of its borders to foreign travel, the Philippines was able to bring in an estimated $3.68 billion in income from 2.65 million foreign visitors in 2017, exceeding its objective of 1.7 million visitors for the year. According to the Department of Tourism, these records.
In comparison to only 163,879 tourists recorded in 2021, this year's numbers of 2.02 million foreign nationals and more than 6 lakh Filipinos living abroad were still much down than the annual level of 8.26 million before the epidemic.
The administration now wants to increase the number of tourists arriving this year to 4.8 million.