Published February 9, 2023, 9:23 AM
A $25 entry tax on foreign visitors to the Philippines that would be set aside and used to improve tourist welfare services.
That, in a nutshell, is the proposal of Camarines Sur 2nd district Rep. LRay Villafuerte, as contained in House Bill (HB) No.5285.
“Tourism has been a growing force in the Philippine economy. The industry has contributed a total of P2.85 trillion to the local economy in 2016, almost 20 percent of our GDP (gross domestic product,” said the veteran solon, whose province was at one time declared by the Department of Tourism (DOT) as the country’s top destination on his watch as governor.
“In 2017, the DOT recorded over 6.6 million tourist arrivals, posting an 11 percent growth from the previous year. The industry performed well in 2018 and 2019 with a respective rise of 16 percent and 17 percent in tourist arrivals, but the momentum was disrupted the following year with the advent of Covid-19,” he said.
Under the proposed Tourist Welfare Tax Law, $25 will be collected from every foreigner visiting the Philippines for tourism and leisure, and staying here for a period of not more 60 days, This levy shall be tucked in the cost of his or her airline ticket.
“This tourist tax shall be reflected in official receipts (ORs) issued by international and domestic carriers, and which shall then be handed over to the ]DOT] for the development of tourist welfare services, improvement of TIEZA’s (Tourism Infrastructure and Enterprise Zone Authority) services in tourism infrastructure, and for upgrading the programs of LGU (local government unit) tourism offices in their respective localities,” read the Villafuerte bill.
Villafuerte, president of the National Unity Party (NUP), said the fixed rate of $25 is “proposed to be competitive with that of the current taxes other countries have set. “This is mainly based on the average rates of entry and exit taxes imposed by Asian countries such as Thailand, Indonesia, Brunei, Sri Lanka, Cambodia, Hong Kong and China.”
He explained that the collection of entry and exit taxes has been imposed by other countries on visiting foreign nationals in order to boost their respective tourism development funds.
HB No.5285 recognizes Philippine tourism as “an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socioeconomic growth and cultural affirmation to generate investment, foreign exchange and employment, and to continue to mold an enhanced sense of national pride for all Filipinos.”
The bill also includes a tax refund option for tourists erroneously charged as well as for those who have each spent over $10,000 or its peso equivalent in tourism receipts during their stay in the Philippines.
The measure is currently pending with the House Committee on Ways and Means.
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