Department of Tourism (DOT) Secretary Christina Garcia Frasco has expressed optimism that the newly implemented Value-Added Tax (VAT) Refund for Non-Resident Tourists law will significantly enhance the country’s tourism sector.
Frasco’s remarks came after the ceremonial signing of the Implementing Rules and Regulations (IRR) for Republic Act No. 12079 on March 24 at the Department of Finance (DOF) in Manila.
This landmark legislation, signed into law by President Ferdinand Marcos Jr. in December 2024, establishes a VAT Refund System enabling non-resident tourists to reclaim VAT on local purchases amounting to at least PHP 3,000. To qualify, these goods must be physically taken out of the country within 60 days of purchase.
Frasco emphasized that this initiative not only aims to make the Philippines a more attractive shopping destination but also to stimulate economic growth by encouraging increased tourist spending.
“The signing of the VAT refund law by our President and the subsequent signing of the IRR therefore come at an opportune time for our country, where tourism spending is at an all-time high. According to the World Travel and Tourism Council, in comparison with our ASEAN neighbors, tourists that come to the Philippines spend the highest per capita at no less than 2,073 US dollars. And we foresee that with the implementation of this VAT refund act, we would be able to inure more benefits for our local tourism stakeholders in the component of shopping tourism,” said Secretary Frasco, who served as a principal witness to the signing.
“What the speed of the signing of the law and the signing of the IRR indicates is this, that under the administration of President Ferdinand R. Marcos Jr., this is a government that listens, that acts and that puts forth the welfare of the Filipino people first and foremost,” the Tourism Chief emphasized.
Secretary Frasco also underscored the broader economic impact of the measure: “We foresee that the ripple effect of the implementation of this law will be vast—not only in terms of retail, but most importantly, in terms of the sectors that this will benefit from generated income from shopping, accommodations, transport, and other related services.”
She expressed gratitude to President Marcos for his decisive action in signing the VAT Refund Law and acknowledged the coordinated efforts of the different government agencies and the private sector. “Thank you for always articulating what you believe our country needs in order for it to arise in terms of global competitiveness. And we hope that by our continued collaboration, we can ensure that the Philippines emerges as a tourism powerhouse, that it deserves to be,” Secretary Frasco concluded.
The ceremonial signing was led by DOF Secretary Ralph Recto, Bureau of Customs (BOC) Commissioner Bienvenido Rubio, and Bureau of Internal Revenue (BIR) Deputy Commissioner Marissa Cabreros. Also serving as witnesses were Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go and Department of Trade and Industry (DTI) Secretary Cristina Aldeguer-Roque.
Also present during the ceremonial signing were representatives from key agencies and tourism stakeholders, including DOT Chief of Staff and Undersecretary Shahlimar Hofer Tamano; Duty Free Philippines Corporation (DFPC) Acting Chief Operating Officer Patrick Joel M. Cinco; Philippine Retirement Authority (PRA) General Manager and CEO Roberto “Bob” Zozobrado; Tourism Promotions Board (TPB) Chief Operating Officer Maria Margarita Montemayor Nograles; Department of Information and Communications Technology (DICT) Director Dennis Morales; and other government officials.
Joining from the tourism and retail sectors were Association of Tourism Officers of the Philippines (ATOP) President Junel Andaya Divina; Megaworld Hotels and Resorts Group General Manager Arturo Boncato Jr.; and Philippine Retailers Association (PRA) President Roberto S. Claudio Sr.
Also in attendance were Philippine Hotel Owners Association (PHOA) President Arthur Lopez; PHOA Executive Director Benito Bengzon Jr.; Pacific Asia Travel Association (PATA) Philippines Chapter Chairperson Maria Paz Alberto; and Philippine Tour Operators Association Inc. (PHILTOA) President Arjun Shroff, among others.
