The Philippine House of Representatives has recently moved to bolster the country’s foreign loans by approving a bill on second reading that would combine Official Development Assistance (ODA) with other funding sources. The proposed legislation intends to increase the government’s ability to finance its development agenda and support economic recovery efforts amid the COVID-19 pandemic.
ODA refers to financial assistance extended by foreign governments, multilateral institutions, and non-governmental organizations to developing countries like the Philippines. The current bill aims to broaden the funding options available to the Philippine government by allowing it to combine ODA with other financing sources, such as domestic and foreign commercial loans, grants, and bonds.
The measure also seeks to streamline the approval process for ODA projects and ensure timely implementation and efficient use of funds. The proposed reforms are expected to improve the government’s capacity to implement critical infrastructure projects, boost social services, and spur economic growth.
In a separate initiative, lawmakers also gave their nod to a bill proposing a value-added tax (VAT) refund scheme for foreign tourists. The proposed law aims to enhance the competitiveness of the Philippine tourism industry by providing incentives to foreign visitors and encouraging them to spend more during their stay in the country.
Under the proposed scheme, foreign tourists will be entitled to a VAT refund on their purchases of goods and services in the Philippines. The refund amount will be equivalent to six percent of the total purchase value, subject to certain conditions.
The measure is seen as a crucial step towards revitalizing the country’s tourism sector, which has been severely impacted by the pandemic-induced travel restrictions. The Philippines, known for its white sandy beaches, lush green forests, and vibrant cultural heritage, is a popular tourist destination in Southeast Asia. However, the industry has suffered a significant decline in revenue over the past two years due to the pandemic, resulting in job losses and business closures.
Tourism officials expressed optimism that the VAT refund scheme would attract more foreign tourists and increase their spending in the country. The proposal aligns with the government’s efforts to promote sustainable tourism and inclusive economic growth.
The Philippine House of Representatives’ recent approval of these bills reflects the government’s commitment to leveraging foreign aid and private sector financing to fuel the country’s development agenda. By broadening its funding options and incentivizing foreign visitors, the Philippines seeks to position itself as a competitive player in the global economy and accelerate its post-pandemic recovery.
