‘Unfair to Filipinos’: Groups slam VAT refund for foreign tourists

Metro Manila (CNN Philippines, January 30) — The Alliance of Concerned Teachers (ACT) on Monday said the recently approved value-added tax (VAT) refund for foreign tourists is “highly unfair” to Filipinos.

“It is highly unfair that Filipinos are forced to pay the VAT while foreign tourists will be exempted from it,’’ ACT Chairperson Vladimer Quetua said in a statement.

VAT relief should be given first to Filipinos rather than foreign tourists, Queta said.

Call to repeal VAT

Quetua, together with ACT Representative France Castro and Kilusang Magbubukid ng Pilipinas Chairperson Danilo Ramos, pushed for the removal of VAT as it poses additional burden to Filipinos amid record-high inflation in the country.

“Our government continues to refuse to do anything about these soaring prices of basic goods which could start with repealing excise taxes and VAT on oil products,” Castro said.

Ramos said abolishing VAT on petroleum products will ease the burden of consumers affected by almost weekly oil price hikes.

READ: Oil price hikes set this week

“Removing the excise tax and VAT on oil will remove P6 per liter from diesel, P5.35 per liter for unleaded gasoline, and P3 per kilogram of LPG,” Ramos said.

The standard VAT rate in the country is 12% of the gross and selling price of goods or properties sold, or gross receipts from the sale of services.

Following the recommendation of Private Sector Advisory Council, President Ferdinand Marcos Jr. on Sunday approved the VAT refund for foreign tourists in an effort to boost the country's tourism industry.

READ: Marcos eyes VAT refund program for tourists – Palace

Palace officials said Marcos will soon issue an executive order to implement the tax refund program.

Senator Grace Poe on Monday said she will consult experts on how VAT refund can roll out efficiently. Meanwhile, Senator Chiz Escudero wants to lay down rules of the program "to avoid abuse and the possibility of tax leakage."

Last July, Marcos vetoed the tax exemption for election workers. In his veto message sent to Congress, Marcos said exempting poll workers from income tax “runs counter” to the government’s tax program.

READ: Marcos vetoes more bills: Tax exemption on poll honoraria, creation of transportation safety board

Aside from the VAT refund program, Marcos approved the rollout of e-visa this year — prioritizing China and India.

He also allowed the removal of the One Health Pass requirement so that only one form is now needed for health, immigration and customs.

The Philippines has integrated its quarantine and immigration arrival requirements under https://etravel.gov.ph/.