PRESIDENT Marcos Jr. has approved the proposed Value Added Tax (VAT) refund program for tourists starting 2024 to attract more foreign visitors to visit the country, the Presidential Communications Office (PCO) announced yesterday.
The PCO, in a statement, said the President will issue an executive order detailing the mechanics of the tax refund program for tourists, which it said is already being implemented in some countries.
Data from the Department of Tourism (DOT) showed that an estimated 2.65 million foreigners entered the country from February to December 2022, which is higher than the 163,879 tourist arrivals in 2021 but lower than the pre-pandemic level of 8.26 million.
This year, the DOT is looking at 4.8 million visitors, which government said could generate P2.58 trillion in revenues.
The proposed tax refund was part of the “Quick Wins” recommendations submitted by the Private Sector Advisory Council (PSAC) Tourism Sector Group to the President last Thursday in Malacañang.
The other PSAC recommendations also approved by the President were the expansion of the electronic visa (e-visa) coverage to also include Chinese, Indian, South Korean and Japanese nationals; the grant of visa upon arrival visas to Indian nationals, the removal of the One Health Pass (OHP) or requirement of one form only for health, immigration and customs, the revocation of outdated advisories and loud-speaker announcements in the country’s airports, and the automatic inclusion of travel tax in all airline tickets.
The President also okayed the proposal to improve airport infrastructure and operations, touch up the national brand and image, and promote tourism investments, among others.
PSAC reported to Marcos that their group is now working on the development of a mobile application, to be known as e-Travel, which will integrate all information on immigration, customs, health, and quarantine.
It will also include information about different tourist destinations in the country, transport and hotel information, as well as traffic situations in some areas.
The app will likewise have forms that travelers can fill up before boarding or while onboard the plane.
It will also enable groups or families to input their data easily.
The app is expected to be ready and tested by February.
The President welcomed the recommendations including the development of the application as he highlighted the importance of digitalization and his administration’s commitment to digitize the processes in the country, especially in government.
