Foreign visitors impressed by easier sales tax refunds

New incentives

On Sunday, a new package of measures aimed at further optimizing the departure tax refund policy and boosting inbound spending was announced by the Ministry of Commerce and five other government departments in a joint circular.

The measures include lowering the starting point for tax refunds from 500 yuan ($68.6) to 200 yuan, effective immediately, and doubling the limit for cash refunds from 10,000 yuan to 20,000 yuan.

Adjustment of the starting point for refunds to 200 yuan is expected to enable more specialty stores, souvenir shops and gift shops to join the tax refund program.

The circular also outlines steps to expand the number of departure tax refund stores, increase the supply of merchandise and improve related services. More departure tax refund stores will be set up in major shopping areas, pedestrian streets, tourist sites, resorts, cultural venues, airports, passenger ports and hotels, according to the circular.

Departure tax refund stores are also being encouraged to broaden product offerings to include time-honored brands, renowned Chinese consumer goods, smart devices, intangible cultural heritage items, crafts and specialty products.

"The enhanced shopping experience will help draw more overseas tourists to China and drive an increase in shopping," said Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, adding that it will also contribute to improving the tourism environment and inject more vitality into the market.

Sheng Qiuping, vice-minister of commerce, said at a news conference in Beijing on Sunday, that they are encouraging, "relevant institutions to provide tax refund services through various means such as mobile payments, bank cards and cash, and better meet the diverse payment service needs of overseas travelers".