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Hike luxury tax? Promote tourism instead to boost tax revenue, says Salceda

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ABS-CBN News

MANILA — The Philippines should attract more tourists instead of hiking luxury tax to boost its revenue collection, a lawmaker said Thursday.To promote local tourism, Albay Second District Rep. Joey Salceda said the House of Representatives would soon pass a measure that includes a tax refund for tourists.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/06/14/23/gatchalian-endorses-bill-pushing-for-tourists-vat-refund">Gatchalian endorses bill pushing for tourists&#x27; VAT refund as ways and means committee chairman</a></li></ul>&quot;The next thing that we’re doing is tax refund to tourism and it has far greater value-added,&quot; Salceda told ANC&#x27;s &quot;Headstart.&quot;The lawmaker said hiking the luxury tax was not their priority &quot;simply because we&#x27;re promoting tourism,&quot; which he said could spur local spending. &quot;Every time a tourist goes down the plane definitely there&#x27;s a baggage, a taxi driver, there is a check-in personnel at the hotel, definitely somebody washes your clothes,&quot; he said.Salceda added that imposing higher luxury taxes could scare off tourists.&quot;Sixty percent of their expenditure here is either in shopping or in gambling,&quot; he pointed out.Finance Secretary Benjamin Diokno has rejected the idea of introducing higher taxes on luxury items, which are currently subject to a 20 percent tax. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/business/08/16/23/hike-luxury-tax-instead-of-other-taxes-senator">Hike luxury tax instead of other taxes: senator</a></li>	<li><a href="https://news.abs-cbn.com/business/08/10/23/diokno-rejects-proposed-luxury-tax-hike">Diokno rejects proposed luxury tax hike</a></li></ul><div> </div>

The Philippines should attract more tourists instead of hiking luxury tax to boost its revenue, a lawmaker said.