The Supreme Court has ruled that Republic Act 12709, which grants foreign tourists value-added tax refunds on purchases, is constitutional.
In a unanimous decision promulgated on April 22 2026 and published on July 6 the court dismissed a petition challenging the law. High school teacher John Barry Tayam had argued that the measure violated equal protection by excluding Filipino citizens.
The court held that the policy serves a legitimate state interest in boosting tourism and does not discriminate against citizens. It noted that similar refund systems exist in Indonesia Malaysia Singapore Thailand Vietnam China Japan and several European countries.
Justice Amy Lazaro-Javier wrote the decision which was concurred in by 13 other justices. Chief Justice Alexander Gesmundo and Senior Associate Justice Marvic Leonen were among those who joined the ruling.
