Philippines announces tax refunds to spur tourists to shop more
New legislation is expected to boost tourism spending by 30%
Philippine President Ferdinand Marcos Jr. on Monday enacted a law granting value-added tax refund to non-resident tourists, aiming to spur visitors to shop and spend more.
Foreign tourists with minimum purchases from accredited stores worth 3,000 pesos ($52) can claim for tax refunds, provided they take out the products from the Philippines within 60 days, according to Marcos.
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The new legislation is expected to boost tourism spending by 30 per cent, and support the Philippines' goal to be a shopping destination, he added.
"This initiative opens a new chapter in our tourism landscape, allowing our country to compete with other tourism markets to attract tourists eager to take home authentic, high quality Filipino products," Marcos said during the signing ceremony.
The Philippines is moving to invigorate its tourism sector as arrivals from China remain tepid. Tourist arrivals reached 4.5 million in January to October, less than a fifth of those in tourism hotspot Thailand for the same period.
The industry contributed nearly 9 per cent to the Philippines' economic output last year.