The Secretary of the Department of Tourism (DOT), Christina Garcia Frasco, expressed confidence that the newly introduced Value-Added Tax (VAT) Refund system for non-resident tourists will significantly boost the shopping tourism sector in the Philippines.

Frasco’s comments followed the ceremonial signing of the Implementing Rules and Regulations (IRR) for Republic Act No. 12079 on March 24 in Manila. The law, signed by President Ferdinand Marcos Jr. in December 2024, allows non-resident tourists to reclaim VAT on local purchases exceeding PHP 3,000, provided the goods are taken out of the country within 60 days of purchase.

Secretary Frasco noted that this initiative aims to attract more tourists and stimulate economic growth through increased spending. She highlighted tourism spending in the Philippines is the highest among ASEAN countries, with tourists spending no less than 2,073 US dollars per capita. Frasco further emphasized the importance of this refund system for local tourism stakeholders.

In concluding remarks, she thanked President Marcos for his decisive action in signing the VAT Refund Law and recognized the collaborative efforts of various government and private agencies to enhance the Philippines’ position as a global tourism leader.