Foreign tourists to get tax rebates starting next year
China will be introducing a tax rebate plan for foreign tourist shopping in the Hainan Province in efforts to increase spending and boost local tourism in the tropical holiday resort. On January 1 tourist will be able to enjoy an 11 percent tax rebate on purchases of 800 yuan or more, this is according to a statement made by the Finance Ministry in their website.
The policy is a plan by the Chinese government drafted in December 2009 in efforts to build the southern island of Hainan in to a tourism hub. The policy is also in line with the government efforts in changing china’s economy into an economy driven by consumers rather that exports. Overseas tourists can also get tax rebate on purchases on items such as clothes, shoes, jewelry, watches, cosmetics, medical devices, furniture and appliances. Food, cigarettes and cars are the only ones excluded from the rebate.
Last year tourism in Hainan attracted around 23 million visitors domestic and foreign, and estimated to increase in the following years. Chinese consumers will get sales tax rebates if they spend no more than 5,000 yuan, the only drawback is the chinse shoppers will have to wait until May to enjoy the tax rebate.