China Lowers Tourist Tax Refunds to Boost Spending

The upper limit for their tax rebate in cash has also been doubled to 20,000 yuan. The government will expand the coverage of tax refund shops and their procedures. Officials encourage some regions to set up refund points for travellers to get a rebate immediately after their purchases in areas highlighted as concentrated with tourists, the statement said.

China announced a lower threshold for tax refunds for foreign tourists on Sunday, among a series of policies to boost consumption. The country's economy is under pressure during a trade war between Beijing and Washington.

Travellers can apply for a tax refund if they spend 200 yuan at the same store on the same day and meet other needs starting Saturday, according to a joint statement by the Ministry of Commerce and other authorities. Previously, the minimum amount was 500 yuan. The upper limit for their tax rebate in cash has also been doubled to 20,000 yuan. The government will expand the coverage of tax refund shops and streamline the procedures. Officials encourage some regions to set up refund points for travellers to get rebates immediately after their purchases in areas highly concentrated with tourists, the statement said.

China's Vice Minister of Commerce, Sheng Qiuping, told reporters in a news conference that inbound tourist consumption accounted for about 0.5% of China's gross domestic product in 2024, while figures in other major countries ranged between 1% and 3%. That indicated an excellent growth potential, Sheng said.

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China Lowers Tourist Tax Refunds To Boost Spending

News Source : Economic Times