China has introduced a comprehensive set of new measures aimed at optimizing its departure tax refund system to better cater to overseas tourists and stimulate inbound consumption.
The announcement was made on Sunday through a circular jointly released by the Ministry of Commerce and five other government departments.
To make the departure tax refund process more accessible, China has lowered the minimum purchase threshold. Now, foreign travelers are eligible to apply for a refund if they spend at least 200 yuan (approximately 27.75 U.S. dollars) at a single store on the same day, provided they meet the other established conditions. This adjustment is expected to make China an even more attractive shopping destination for international visitors.
Moreover, China is diversifying refund channels to accommodate travelers’ payment preferences. Tourists can now receive departure tax refunds through mobile payments, bank cards, or cash, with the maximum limit for cash refunds increased to 20,000 yuan. These improvements aim to simplify transactions and enhance the overall shopping experience.
The circular further emphasizes the expansion of departure tax refund stores across China. New refund-eligible stores will be opened in prime locations, such as popular shopping malls, pedestrian streets, tourist attractions, cultural venues, airports, passenger ports, and hotels. By doing so, China hopes to make the refund process more convenient and boost tourist spending.
In addition, departure tax refund stores are being encouraged to broaden their range of products. This includes promoting traditional Chinese brands, high-end consumer goods, technological devices, crafts, and other unique items reflecting China’s rich cultural heritage. Special promotions highlighting “must-buy” city souvenirs and “signature gifts” will also be launched to further entice shoppers.
To streamline the departure refund process even further, China has updated the regulatory framework governing refunds. These changes are designed to make it easier for foreign visitors to claim their refunds quickly and efficiently.
Earlier this month, China had already initiated a major shift by allowing foreign tourists to receive instant departure tax refunds at the point of purchase, replacing the older model where refunds were only available upon departure.
According to Chen Binkai, vice president of the Central University of Finance and Economics, these enhancements will not only boost tourism but also promote China’s commitment to high-standard economic opening and growth.