Metro Manila (CNN Philippines, January 29) – President Ferdinand Marcos Jr. approved the implementation of a value-added tax (VAT) refund program for tourists, the Presidential Communications Office (PCO) said.

“Marcos will issue an executive order to implement the tax refund program, which is also being carried out in other countries,” the PCO said on Sunday.

If enacted, foreign travelers will be refunded the 12% VAT imposed on goods and services in the Philippines.

Some countries that currently offer tourist VAT refunds include Singapore, Japan, South Korea, Australia, Switzerland, Italy, and Spain.

However, tourists can only avail of the refund if they spend above a minimum amount, which varies among countries.

The Private Sector Advisory Council (PSAC) Tourism Sector Group said the Philippines’ tourist VAT refund program could be implemented by 2024.

The PSAC also pitched the inclusion of India in the country’s visa-upon-arrival list, removal of the One Health Pass, and the improvement of Philippine airport facilities.

Marcos ordered the inclusion of Chinese, Indian, South Korean, and Japanese nationals in the e-visa program.

READ: Marcos wants Chinese, Indian, South Korean, Japanese tourists included in e-visa program

It was one of the “Quick Wins” recommendations the PSAC made to Marcos last Thursday in a bid to enhance the Philippine tourism industry.

For this year, the Department of Tourism is targeting 4.8 million international tourist arrivals, which could generate ₱2.58 trillion in revenues, the PCO said.