𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁 𝗠𝗮𝗿𝗰𝗼𝘀 𝗝𝗿. 𝗦𝗶𝗴𝗻𝘀 𝗟𝗮𝗻𝗱𝗺𝗮𝗿𝗸 𝗟𝗮𝘄 𝗼𝗻 𝗩𝗔𝗧 𝗥𝗲𝗳𝘂𝗻𝗱 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝘁 𝗧𝗼𝘂𝗿𝗶𝘀𝘁𝘀
President Ferdinand R. Marcos Jr. signed Republic Act (R.A.) 12079, known as the “VAT Refund for Non-Resident Tourists,” during a ceremonial signing held today, December 9, at Malacañan Palace.
In his speech, the President emphasized the significance of the law, stating that “shopping has become an essential part of the travel experience.” He noted that in 2023, the Philippine tourism sector played a crucial role in the nation’s economic recovery, contributing an impressive 8.6 percent to the GDP. “Within this significant share, shopping emerged as the second largest expenditure for inbound tourists. With this in mind, we are introducing the VAT refund program for non-resident tourists—designed not only to stimulate more spending but to promote the Philippines as a premier global shopping destination,” the President said.
“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 added.
The President highlighted the country’s unique handcrafted items, saying: “Our signature products such as the Marikina shoes, the intricate handwoven textiles from the northern provinces, [and] the timeless craftsmanship of Filipino barongs all stand to benefit from this measure. These products tell our stories, and now, with the VAT refund, they will be able to be more accessible to global consumers, elevating once again our stature in the global market.”
With a projected 30 percent surge in tourist spending, he noted the benefits for both large-scale industries and micro, small, and medium enterprises (MSMEs), which are vital to the local economy. “Tourists who have a positive shopping experience are more likely to return—with their friends and their families—supporting our goal to become a premier shopping destination in Southeast Asia,” he said.
The President concluded by urging the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) to develop Implementing Rules and Regulations (IRR) that will make the law “simple, accessible, and culturally inclusive.”
Witnessing the signing were Senate President Francis “Chiz” Escudero, House Speaker Martin Romualdez, Senators, Members of the House of Representatives, Tourism Secretary Christina Garcia Frasco, Cabinet Secretaries, and representatives from the tourism, agriculture, and education sectors.
R.A. 12079 harmonizes Senate Bill No. 2415 and House Bill No. 7292. During the same ceremony, the President also signed two other landmark legislations: the Amendments to the Agricultural Tariffication Act and the Basic Education Mental Health and Well-being Promotion Act.
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