Economic czar Frederick Go on Thursday said that the country has potential to become one of Asia’s shopping capitals, but this will depend on the passage of two important measures.
First off, Go said that the country needs to have an electronic visa (e-visa) system, a program that has been suspended by the Department of Foreign Affairs since November of last year, to attract more foreigners to shop in the Philippines.
READ: Food, shopping, culture, history: 48 hours in vibrant Manila
“We need the e-visas to become a shopping capital. That means you’re attracting visitors from all over the world to come here and enjoy and shop,” Go told reporters on the sidelines of the opening of the two-day National Retail Conference and Expo at the SM Mall of Asia Convention Center in Pasay City.
“We need to make it easier for travelers to come to the Philippines,” he added.
Refund process
The second one is a value-added tax (VAT) refund process, said Go, citing that “practically every country in Asia” has this system.
“So, if we indeed want to become a shopping capital of Asia or of the world, we need to have those two as basic. These are what you call very basic, very fundamental to becoming a shopping capital,” said Go.
Roberto Claudio, president of the Philippine Retailers Association (PRA), said in his speech during the event that a VAT refund process would boost retail sales and tourism revenues.
“This is a major breakthrough for retail,” he said, highlighting that nine Asian countries already have such a system in place.
In the Philippines, the retail sector contributes about 18.6 percent to the country’s gross domestic product, according to the PRA official.
This translates to an estimated P750-billion contribution yearly, said Claudio.