Chinese authorities have unveiled a new policy package ahead of the May Day holiday aimed at making shopping more convenient for international travelers, including extending the scope of tax refunds for visitors.
Earlier this month, China announced a nationwide shift from a refund-upon-departure model to a refund-upon-purchase model for departure tax refund, enabling foreign visitors to instantly claim value-added tax rebates at tax-free stores across the country.
This was further enhanced on Sunday when the Ministry of Commerce announced that it would add more tax-free shops at tourist hotspots, hotels and airports across the country. Meanwhile, the minimum one-time spend eligible for tax refunds has been reduced from 500 down to 200 yuan, (around 27.5 US dollars), with the upper limit for cash refunds doubled to 20,000 yuan (about 2,750 U.S. dollars).
In recent months Chinese authorities have also introduced more visa-free policies, including allowing eligible citizens from 54 countries, such as Russia, Brazil, the UK, the United States, and Canada, to enter visa-free for up to 10 days while transiting to a third country or region.
With longer visa-free stay permitted and improved shopping experiences being offered, foreign visitors are taking advantage of the chance to purchase more expensive and innovative products.
In southwest China's Chengdu City, known as the home of the giant panda, tourists from the UK said they are enjoying the new policies while out shopping for souvenirs.
"[I bought some] clothes with the city name on it, so that everyone back home knows I've come here," said one visitor.
"I bought a little toy panda for my girlfriend to take back home," said another.
Meanwhile, the new tax policies have also been well received among attendees at the 137th China Import and Export Fair, more commonly known as the Canton Fair, one of the country's largest and longest-running international trade events held in the southern city of Guangzhou.
Several foreign buyers say they have experienced the instant tax refund service and are impressed by the fast and efficient procedures.
"Unbelievable, the whole process takes only five minutes. So the tax refund was transferred to my bank account very fast, without leaving the store. So it is very convenient," said a Serbian buyer.
"I definitely need to try it. It is good because, I immediately get back the money. So this is something good, this is a great idea. I think it will support a lot for the Chinese economy. So you will be more competitive with the prices, with the other nations, with the other countries," said another.
China started to implement the departure tax refund policy for overseas travelers in 2015. Since its implementation, the scale of departure tax refunds has grown year by year, benefiting an increasing number of overseas travelers.
Official data showed that last year, the sales revenue of goods eligible for departure tax refunds and the amount of tax refunded both posted strong growth, rising by 120 percent and 130 percent year on year, respectively.
China expands departure tax refund policy to stimulate tourist spending
