President Ferdinand Marcos, Jr. he signed last Monday Republic Act (RA) No.12079, which provides Value Added Tax (VAT) refunds to non-resident tourists.

They can claim refunds on in-person purchases worth P3,000 per transaction in accredited stores, provided it is taken out of the country within 60 days from purchase.

In his speech during the law's signing ceremony in Malacanang, Marcos said the measure is expected to boost growth by helping raise tourist spending by almost 30 percent.

"This surge will benefit both large-scale industries and micro, small, and medium enterprises?an important pillar of our local economy," he said.

Tourism Secretary Christina Frasco said inbound tourism expenditure on shopping reached P134.4 billion in 2023.

"Shopping remains a key driver of tourist activity, and this VAT refund scheme is expected to further elevate the country’s appeal,” Frasco said in a statement.

The law will also promote Filipino encouragement abroad by encouraging more foreigners local handcrafted items abroad such as Marikina shoes, handwoven textiles from the northern provinces, and Filipino barong, said Marcos.

"This initiative opens a new chapter in our tourism landscape, allowing the country to compete with other tourism markets that attract tourists who are eager to take home authentic, high-quality Filipino products," he said. DMS