Instant tax refund policy boosts inbound consumer consumption

China's instant tax refund policy for foreign tourists, which shifts from a refund-upon-departure model to a refund-upon-purchase model, has boosted travel flows as well as inbound consumption.

Under the new refund-upon-purchase policy, foreign visitors can instantly claim value-added tax (VAT) rebates at tax-free stores, enabling them to reuse the refunded amount in real time for further shopping. Previously, VAT rebates were only available for withdrawal upon departure.

In the first quarter of this year, the number of foreign tourists visiting the ancient town of Nanxun in Huzhou City, east China's Zhejiang Province, saw a year-on-year increase of 302 percent.

In a tax refund store in the ancient town, many foreign tourists are browsing and selecting their favorite products. One foreign visitor, who had just purchased some cultural and creative products as well as calligraphy items, was eligible for a tax refund of 53.5 yuan (about 7.33 U.S. dollars) based on his total purchase. This amount could be used to buy even more products.

"The shopping experience here is fantastic; I'll definitely come back next time," said a tourist from Egypt.

"To cater to the personalized needs of foreign tourists, we offer specialized services such as one-on-one foreign language guides, full-process tax refund assistance, and enhanced shopping experiences for visitors," said Sun Hui, director of a duty-free shop in Nanxun ancient town.

Recently, the Shenzhen Municipal Bureau of Commerce and the Shenzhen Municipal Taxation Bureau in south China's Guangdong Province jointly released the list of the ninth batch of departure tax refund stores in Shenzhen, covering categories such as electronics, fashion, and home products.

With this addition, the number of departure tax refund stores in Shenzhen has exceeded 400, further expanding the city's departure tax refund service network.

"In the first quarter of this year, the tax refund amount has already reached 1.6 million yuan, which has greatly contributed to increasing our sales revenue," said Huang Canhui, director of a store.

The volume of departure tax refunds in Shenzhen has also shown significant growth. According to statistics, in the first quarter of this year, Shenzhen Customs processed departure tax refunds totaling 16.437 million yuan (about 2.25 million U.S. dollars), a year-on-year increase of 1.58 times.

"Refundable items must be in unused or unconsumed condition. Once the customs verification is complete, tourists can proceed to the adjacent bank window to handle the subsequent refund procedures," said Wang Jian, a custom officer at Man Kam To Control Point in Shenzhen.

Instant tax refund policy boosts inbound consumer consumption

Russian President Vladimir Putin and U.S. President Donald Trump held a phone conversation on Wednesday, discussing the recent shooting at the White House press dinner, the situation in Iran and the Ukraine crisis, the Kremlin said.

The Russian president informed his U.S. counterpart of Russia's readiness to declare a truce with Ukraine for the period of Victory Day commemorations.

Trump voiced strong support for the initiative, noting that "the holiday marks our common victory over Nazism in World War II," said Russian presidential aide Yuri Ushakov after the phone conversation that lasted over an hour and a half.

At Trump's request, Putin described the current situation along the contact line with Ukraine, where Russian troops maintain the strategic initiative and are pushing back enemy positions, said Ushakov.

Putin reaffirmed that the goals of the special military operation will be achieved in any case, the aide said. Russia would prefer this to be achieved through negotiations, for which Ukrainian President Volodymyr Zelenskymust respond positively to the well-known proposals that have been repeatedly put forward, including by the U.S. side, he said. Russia has handed over more than 20,000 bodies of the deceased to Ukraine, Putin told Trump, adding that Ukraine has returned just over 500 bodies to Russia since the beginning of 2025.

Among the issues on the international agenda, the two leaders focused primarily on the situation in Iran and the Persian Gulf, according to the Kremlin.

Putin viewed Trump's decision to extend the ceasefire with Iran as the right move, as it will help stabilize the situation, Ushakov said, adding that Putin drew attention to the inevitable, extremely dire consequences not only for Iran and its neighbors, but also for the entire international community should the United States and Israel resort to force again.

Russia remains firmly determined to fully support diplomatic efforts aimed at finding a peaceful settlement to the crisis, and has put forward a number of proposals intended to resolve differences over the Iranian nuclear program, said the presidential aide.

Ushakov noted that to this end, Moscow will maintain active contacts with Iranian representatives, leaders of Persian Gulf states, as well as with Israel and the U.S. negotiating team.

For his part, Trump also outlined his assessment of the Middle East situation to Putin.

Putin, Trump hold phone call on issues of Iran, Ukraine