John Paolo R. Rivera, associate director of the Asian Institute of Management, said that VAT refunds are common in countries with developed economies and self-sufficient tourism industries.
“VAT refunds will somehow encourage foreign tourists to come but remember that foreign tourists comprise approximately 20% of tourism receipts,” Mr. Rivera said in a Viber message. He also raised concerns on whether the government can make up for foregone revenues.
President Ferdinand R. Marcos Jr. last month expressed his support for a VAT refund scheme for foreign tourists by 2024.
Source: www.bworldonline.com
