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TEMPO.CO, Jakarta – China has implemented a new tax refund policy for foreign tourists. The country will expand the list of duty-free shops in shopping areas, tourist spots, airports, and hotels.
According to statements from the Ministry of Commerce and other departments cited by Global Times, the minimum shopping refund threshold for a single foreign tourist on the same day has been lowered to 200 yuan. Previously, this threshold stood at 500 yuan. The policy came into effect on Sunday, April 27, 2025.
Refunds will be available through various channels, including mobile payments, bank cards, and cash. China aims to accommodate the diverse payment preferences of international travelers. The maximum cash refund limit has been drastically increased from 10,000-20,000 yuan.
China’s Tourism Policy
Reducing the shopping threshold for tax refunds aims to enhance the tourism experience and boost local consumption, amidst the trade war with the United States. China has previously relaxed visa policies, improved payment accessibility, and streamlined customs procedures.
Several new tourism policies in China have impacted tourist visits. According to Statista, in 2024, the number of international arrivals in China reached nearly 132 million. This figure signifies an almost 61 percent increase compared to the previous year but remains below pre-pandemic levels. Of all international arrivals, nearly 105 million came from Hong Kong, Macau, and Taiwan.
The increase in foreign tourists has also boosted the sales volume of eligible tax refund items. As stated by a tax official cited by Global Times, the tax refunds have increased by 1.2 times and 1.3 times year-on-year.
Tax Refund Amount
On April 24, an official from Shanghai reported that the total spending of foreign tourists receiving tax refunds in the city amounted to 760 million yuan, marking an 85 percent increase year-on-year, as reported by domestic news portal ThePaper.cn. The city is one of the five international consumption centers being built by the country, alongside Beijing, Guangzhou, Tianjin, and Chongqing.
During a routine press conference on April 16, Foreign Ministry spokesperson Lin Jian stated that in the first three months of this year, China welcomed 9.215 million foreign tourists, a 40.2 percent increase year-on-year compared to the previous year. China’s visa-free transit policy allows foreign visitors to stay longer and travel more. Among them, 71.3 percent entered China without a visa, Lin said.
GLOBAL TIMES | SCMA
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