A value-added tax (VAT) refund system will bring in more tourists into the Philippines but the country’s largest mall developer expressed hope the implementation will be easy and simple enough to encourage visitors to spend.
“It’s a very positive, very welcome thing. The only hesitation there is, I just hope they can make it very easy and simple (to implement),” said Hans Sy, chairman of the executive committee of SM Prime Holdings, developer of SM malls.
Sy was referring to proposals in Congress to grant VAT refunds on goods purchased and consumed locally by non-resident visitors.
Sy told reporters Wednesday night he hopes once implemented; the VAT refund system would be given outright as long as the tourist presents his passport as is done in countries like Japan.
“I hope it won’t be like in some other countries where they make it almost impossible for you (to get the refund) … they make you line up at the airport (to process), so you get discouraged. (Over the) long term, that is not very good,” said Sy, who was conferred the Outstanding Filipino Retailers President Award by the Philippine Retailers Association (PRA) in Quezon City on Wednesday.
Sy hopes technology will make this system seamless.
Steven Tan, president of SM Supermalls, said the VAT refund will encourage spending and increase tourist arrivals.
Depending on location, SM malls have also become shopping destinations among tourists.
Roberto Claudio, president of the PRA, in his speech at the OFR Awards, said the VAT refund system will put the Philippines in the tourist map for shopping.
“Tourists never came to the Philippines to do shopping considering shopping is the second biggest expense of foreign visitors.
The Philippines is the only country Asia that is not giving VAT refund. This is one explanation Thailand Vietnam and Singapore get more tourists arrivals,” Claudio said.
The Department of Tourism in a statement said the VAT refund on locally purchased goods ensures visitors have an additional incentive to purchase and bring home goods sold in the country and Filipino-made products.
The DOT expressed support to the approval of Senate Bill No. 2415 and now adopted by the House of Representatives which allows the refund for purchases of P3,000 and up.
The system is projected to boost tourist spending by 30 percent as estimated by the House Committee on Ways and Means.
