China introduced a tax rebate plan for foreigners shopping in Hainan province in an effort to spur spending and boost tourism in the tropical holiday resort.
The 11 percent rebate starts Jan. 1 and will apply to purchases of at least 800 yuan ($121), the Ministry of Finance said in a statement posted on its website today.
The policy is the latest move under a plan unveiled by the Chinese government in December 2009 to build the southern island of Hainan into an international tourism hub. It is also in line with government efforts to transform China’s economy into one driven by consumers rather than spurred by exports.
Tourists from overseas will be able to get the tax rebate on items including clothes, shoes, watches, jewelry, cosmetics, medical devices, furniture and home appliances, according to the statement. Food, alcohol, cigarettes and cars are excluded.
Tourism revenue in Hainan, which attracted 23 million domestic and overseas visitors last year, may climb almost sixfold to 124 billion yuan by 2020 from last year, according to the State Council, China’s Cabinet.
Chinese shoppers will have to wait until May or later to enjoy the tax rebate, the China Daily newspaper reported today, citing Guo Zhiming, an official with the Hainan government.
The Shanghai Securities News reported Dec. 24 that Chinese consumers will be able to get their sales tax returned if they spend no more than 5,000 yuan each time.
