BEIJING, June 10 (Xinhua) -- China saw a vibrant surge in inbound consumption following the rollout of its refined tax-refund-upon-departure policy, with notable increases in both the number of tax refund stores and the total amount refunded.
Between April 27 and May 26, the number of departure tax refund transactions processed by the country's tax authorities jumped 116 percent year on year, and sales at tax refund stores climbed 56 percent, the State Taxation Administration said on Tuesday.
The country has expanded its refund-upon-purchase service model nationwide, with the number of related transactions increasing 32-fold and sales surging 50-fold year on year, according to data released by the administration.
Driven by the new policy measures, 1,303 new departure tax refund stores were established across the country during the period, raising the total to 5,196, which was a 40 percent increase from the end of 2024, the data shows.
This rise in inbound consumption is a result of China's latest efforts to encourage foreign tourist spending. On April 27, the country introduced a package of measures to optimize its departure tax refund policy, including measures lowering the minimum purchase threshold for refunds, raising the cash refund ceiling, expanding the network of participating stores, and broadening the range of products covered.
China is also promoting a refund-upon-purchase service model, allowing eligible tourists to receive tax refunds instantly at retail outlets rather than waiting until they leave the country.
International tourists in China can now claim a tax refund if they spend at least 200 yuan (about 27.84 U.S. dollars) at a single store in a single day and meet other relevant requirements, with refunds payable in multiple forms, including mobile, bank and cash payments. The upper limit for cash refunds has been raised to 20,000 yuan.
China's metropolises led this shopping surge. In the month following the policy rollout, Shanghai saw an 86 percent year-on-year increase in sales involving tax refund transactions and a 77 percent rise in the total amount refunded, according to local tax authorities.
With a raised cash refund ceiling and a lowered minimum purchase threshold for refunds, the new policy allows shoppers from overseas to enjoy benefits across a wide range of products, from high-end goods to everyday items like clothing, said Chen Xiaoling, general manager of Shanghai's Florentia Village outlet mall. The policy has made shopping in China more convenient and yielded better value for money for international visitors, Chen noted.
This streamlined refund process has boosted shopping enthusiasm among international tourists.
At WF Central, which is a luxury mall on Beijing's popular Wangfujing shopping street, a large banner promoting the refund-upon-purchase tax service hangs prominently in the central atrium. This service is now available at nearly 40 international-brand stores in the mall.
Alice, a tourist from the United States visiting her family in China, recently purchased a watch and applied for a tax refund immediately after. She presented her passport along with her shopping and departure details at the service counter, and received her refund within minutes. It was her first time purchasing luxury goods in China, and she found the service to be convenient, she said.
Plaza 66 in Shanghai regards the refund-upon-purchase service as an important engine to boost its market competitiveness and strengthen its international profile. As of May 27, the mall has processed over 280 refund-upon-purchase transactions -- already exceeding the whole-year total for 2024.
China is accelerating development of international consumption center cities to stimulate inbound spending. The country is working to transform five cities -- Shanghai, Beijing, Guangzhou, Tianjin and Chongqing -- into major centers for shopping.
Also to stimulate inbound consumption, China will increase its number of duty-free stores and expand the range of products eligible for the refund-upon-purchase service, particularly high-tech digital goods such as smartphones, smartwatches and small household appliances, as well as items that are popular among younger consumers, Shi Zeyi, an official of the Ministry of Culture and Tourism, said last month.
China's Vice Commerce Minister Sheng Qiuping recently stated that China will continue to improve its international consumption environment, increase its supply of high-quality products, and create more diversified consumption scenarios to boost inbound consumption. Enditem
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