China has expanded its departure tax refund policy to more regions starting July, including the northeastern coastal city of Dalian and central China's Hubei Province, as part of efforts to attract international tourists and boost inbound consumption.
China began implementing the departure tax refund policy for overseas travelers in 2015. The policy allows overseas tourists to claim back value-added tax on eligible purchases made at designated tax refund stores before leaving China. Eligible regions can adopt the policy after filing with relevant government organs.
With China now extending its unilateral visa-free policy to 47 countries, a growing number of foreign visitors are arriving, which fuels a surge in tourism spending.
Since the departure tax refund policy took effect in Dalian, foreign visitors are allowed to claim cash reimbursements immediately after purchases at designated stores.
Tatyana, a Russian tourist exploring tea shops at a local shopping mall, wanted to select some tea packages as gifts for family and friends.
"We like Chinese tea very much. We just sampled several Chinese teas with different flavors. Thanks to the tax refund policy, we are able to purchase these teas at a better price," she said.
Under Dalian's new policy, international shoppers can now receive instant tax refunds just by scanning a QR code to submit their purchase receipts and some personal information. After getting tax refunds, many tourists are using the refunded cash to continue shopping.
"We browsed around, bought some tea, and then found this great store to buy sea cucumbers," said another Russian tourist Marina.
Currently, Dalian has five major shopping malls and more than 40 brand retailers offering departure tax refund services for inbound visitors.
"We are expanding tax refund services to key locations frequented by international travelers, including major commercial areas, pedestrian streets, tourist sites, and hotels, creating more convenient instant tax refund options for inbound visitors. At the same time, we are adding more local products to the tax refund program, including the popular brands, traditional businesses, and cultural and creative goods from Dalian. Good-quality local products will qualify for tax refunds, giving foreign visitors more options for local goods," said Zhai Ruiguang, deputy director of Dalian Municipal Bureau of Commerce.
In Hubei Province, the departure tax refund service now covers 57 stores in its first phase, including the provincial capital Wuhan and other major cities and regions.
"[I bought] not only electronic devices but also clothes and some handicraft. So, with this new idea, I guess many international customers will be attracted to Chinese products," said Vina, a tourist from Poland.
According to official data, in the first six months of this year, Wuhan saw international visitors from more than 160 countries and regions, with tourist numbers up 30.3 percent and total spending up 37.8 percent compared to the same period last year.
With Hubei's new tax refund policy now in place, inbound consumption in the region is expected to grow even stronger.
China expands departure tax refund policy to more regions to boost inbound consumption
