Tax Refund Program Offered to Boost Tourism and Sales from Foreign Tourists
A new program created that will help boost tourism and sales of items that are popular with foreign tourists, Beijing and Shanghai will now offer overseas visitors tax refunds on purchases they have made. The rebate program will hopefully stimulate the development of Beijing’s tourism that saw a slow growth in foreign visitors spending and a decrease in the number of visitors coming.
The tax refund policy is a step in creating Beijing as a international tourism destination since tourist from overseas as well as those coming from Hong Kong, Taiwan and Macau that have lived in the Chinese mainland for not more than 183 days are eligible for an 11 percent rebate in consumer goods that are bought in certain stores. Currently there are 86 stores and 27 in Shanghai that have submitted their intent and are qualified for the tax rebate program as long as the minimum purchase to obtain the refund is more than 500 yuan in any store in one day.
By offering tax refunds is long to be an important part of any city and country to attract overseas tourists and more than 50 countries and regions have already implemented tax refund policies. Even with the said tax refund several experts are still questioning the program to produce the right results as one of the biggest obstacle in increasing overseas tourist spending is lacking the power to buy sought after products.