President Ferdinand Marcos Jr. approved the Private Sector Advisory Council's (PSAC) recommendation to boost the tourism industry after the VAT Refund for Non-Resident Tourists was signed into law.

In a meeting in Malacañang Palace on Wednesday, Marcos said that the recommendations made by the PSAC tourism sector are "significant initiatives" to attract more visitors to the Philippines.

Among those recommendations include the nationwide “Shopping Festival Philippines” which will coincide with New Year's Eve celebrations.

With this, the government aims to incentivize international tourists by encouraging them to increase their spending boosting tourism revenue.

“We’ve talked about this shopping festival. Again, I think it’s properly categorized as an easy win. So, we’ll do that,” Marcos said.

The newly-signed VAT Refund Law or Republic Act No. 12079 enables tourists to claim a refund on the Value Added Tax for goods personally purchased at accredited retail outlets within 60 days, provided they meet a minimum transaction requirement of P3,000. 

Under the new measure, tourist spending is projected to increase by 30 percent benefitting both large-scale industries and micro, small, and medium enterprises (MSMEs). 

In the same spirit, Marcos also approved the recommendation to ease visa access to AJACS (American, Japanese, Australian, Canadian, Schengen) and AJACSUK (American, Japanese, Australian, Canadian, Schengen, Singapore, or UK) visa holders.

He noted that the initiative is already “the first thing” on his agenda.

“I think we should stop messing around with this system. It’s so clear already. And again, it’s something that we don’t have to pilot because it has been done for us in many, many airports,” he said. 

However, the recommendation must be carefully studied, particularly its security aspects, according to Marcos. 

Also, the Chief Executive directed a thorough review of PSAC’s recommendation to enhance the immigration experience by introducing a digital identification system utilizing biometric data, such as facial recognition or fingerprint, to ensure seamless transactions and secure travel processing. 

“It’s just a question really of putting the systems in and getting the hardware, and then slowly educating everybody how to use that hardware," he said. "For me, it’s just a question of adopting the technology and learning how to use it. As I said, everybody else in the world is doing it already."

Meanwhile, PSAC members expressed their delight in Marcos' approval of their recommendations noting that the new VAT refund law will strengthen the Philippines' global competitiveness, drive economic growth, and generate employment.

"The VAT refund program will strengthen the Philippines' global competitiveness, drive economic growth, and generate jobs by encouraging higher spending on local goods and services.”