Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go said that to be a shopping capital just like other Asian countries, the Philippine government should consider promoting electronic visas (e-visas) and value-added tax (VAT) refunds for tourists.
“We always have the potential to be the shopping capital in Asia. But we need two things: we need e-visas to make it easier for travelers to come to the Philippines and shop, and the VAT refund for tourists. Practically, every country in Asia has VAT refunds for tourists and we don’t,” Go told reporters on the sidelines of the 30th National Retail Conference and Expo (NRCE) of the Philippine Retailers Association (PRA) on Thursday at the SMX Convention Center.
Go said the two options are the basic and fundamental needs to transform the country into a shopping capital of Asia or maybe, the world.
The OSAPIEA secretary said he is confident that he has the same mind as Tourism Secretary Christina Garcia Frasco for the said programs.
Go said the tax refund in other countries goes 60 to 90 percent VAT and the country should be guided by the said exemption.
“If our VAT is 12 percent, the refund of the shop to the shopper is around seven to nine percent. And to my knowledge, there should not be VAT refunds. This should be a law and the proponent should be the Department of Tourism and the rules should be done by the Department of Finance,” he said.
As of 10 July, the DoT said the country has welcomed 3,173,694 inbound tourists, 2,937,293 or 92.55 percent of which are foreigners while 236,401 or 7.45 percent are overseas Filipinos.
“I am in favor of it to boost tourism and economic activity from tourists. Tourism is a very low-hanging fruit and one of the easiest things we can boost. Although some countries are already ahead of us, it's never too late,” he added.
Themed "Retail Today, Empowering Tomorrow", the NRCE gathered more than 2,000 retailers in the country which was offered with diverse businesses emerging across various platforms and channels and introduced new formats tailored to meet the needs of consumers across different age groups.
PRA President Roberto Claudio said, “As we usher in a new era of retail, the PRA ensures that retailers stay ahead of the curve with a robust arsenal of strategies to propel their businesses forward.”