China expands tax refunds for foreign tourists

China further optimized departure tax refund policies for foreign tourists, including lowering the minimum refund bar to 200 yuan (HK$212.90), in a bid to boost domestic consumption amid rising US-Sino trade tensions.

The policies, announced by China’s Ministry of Commerce and five other departments on Sunday, aim to better meet the tax refund demand for foreign shoppers when leaving the country.

The minimum amount of tax-refundable items purchased by tourists per day at the same store has been decreased to 200 yuan.

The limit of cash tax refund has been raised to 20,000 yuan and Beijing has encouraged agencies to also offer refund services via digital payment and credit cards.

The authorities also encouraged local governments to expand the tax refund eligible stores to large-scale shopping areas, tourist attractions, museums, hotels and other spots, and include more domestic products, historic brands and specialties as refundable items.

The optimized policies came into effect on Sunday.

STAFF REPORTER