Senator Sherwin Gatchalian on Monday said the proposed value added tax (VAT) refund measure for non-resident tourists should provide a seamless experience to ensure that its objective of attracting more tourists is realized.

In a statement, Gatchalian said customer experience is very important “and what we want is a seamless experience when non-resident tourists claim the refund at the airport.”

A provision in the proposed measure should be able to prevent possible abuse by some unscrupulous individuals who might want to take advantage of the program and should include a provision on the accreditation of retailers that would be recognized for the VAT refund.

Such an accreditation process, according to Gatchalian, would deter those who may attempt to defraud the government through the VAT refund program, adding that such an accreditation process should make it easier for micro and small enterprises to be included in the VAT refund scheme.

“I really want to give special attention to local products. This can be a good opportunity to promote local products because there are plenty of mom-and-pop stores that we need to accommodate and help join in the bandwagon of this VAT refund scheme,” he said.

Gatchalian, chair of the Senate Ways and Means Committee, will also tackle in his proposed measure the possibility of including overseas Filipino workers (OFWs) or Filipino expats based abroad in the VAT refund scheme.

He said a projected shopping revenue of around PHP9 billion can compensate for an estimated foregone revenue of PHP4 billion, adding that the said tax reprieve is seen to contribute about PHP12 billion to the country’s gross domestic product (GDP).

Gatchailian is hoping the proposal could be enacted into law within the year, as he noted that the Philippines is the only remaining country in ASEAN that is yet to adopt a VAT refund program for foreign tourists.

The proposed measure is seen to enhance the country’s competitiveness as a tourist destination in Asia and boost tourist arrivals to its pre-pandemic level of 8.2 million in 2019. (PNA)