Philippines government decided to offer VAT refunds to foreign tourists by next year. VAT means ‘Value Added Tax’, which is charged on goods and services, levied at each stage of a supply chain. Current Philippines’ VAT on goods is 12 %.
President Ferdinand Marcos approved this to recover and speed up the tourism industry. At the same time, it also can help to improve airport infrastructure and boost tourism investment. In addition, the president also approved the introduction of an online visa from this year for Chinese, Indian, South Korean and Japanese tourists with the same aim. Philippines government is targeting about five million foreign tourists this year.