China boosts tourism with new tax refund policies

29-04-25

In an effort to boost domestic consumption and bolster economic recovery, China has announced the implementation of new tax refund policies aimed at foreign tourists. The measure aims to stimulate spending by international visitors, thereby improving the country's attractiveness as a shopping destination and strengthening the recovery of the tourism sector after the challenges of recent years.

According to Chinese tax authorities, foreign tourists will be eligible for refunds on value-added taxes (VAT) paid on products purchased at designated shops, provided that the items purchased are not used in the country and are taken outside Chinese territory. To qualify for these benefits, visitors must meet certain requirements, such as a short period of stay and a minimum amount spent in participating shops.

The announcement is part of a broader strategy aimed at revitalising the tourism sector and attracting a greater flow of international travellers. Since the gradual reopening of its borders, China has been implementing measures to encourage inbound tourism, aware of the strategic role it plays in boosting domestic demand and energising various related industries, such as hospitality, transportation and retail.

The Chinese authorities emphasised that this new tax refund scheme will be implemented in an agile and efficient manner at strategic points such as international airports and ports of departure. The implementation will be supported by digital systems that will allow tourists to process their refund claims quickly, reducing waiting times and improving the overall travel experience.

In parallel, an expansion of the number of merchants eligible to participate in the programme will be promoted, so that tourists will have more options to enjoy this advantage. The authorised establishments will be properly identified and must meet strict quality and service standards to ensure the satisfaction of foreign visitors.

The Ministry of Finance and the State Administration of Taxation have stressed that these refund policies are in line with efforts to further open up the domestic market, while strengthening economic and cultural ties with the rest of the world. In addition, they believe that stimulating tourist consumption will contribute to the growth of key sectors, boosting not only major cities such as Beijing and Shanghai, but also emerging destinations in other provinces.

Experts point out that such initiatives are crucial in the current context, where global competition for tourists is intense and where the shopping experience can be a decisive factor in destination choice. By offering clear economic advantages, China is seeking to position itself as a preferred choice over other Asian markets that are also competing for international tourism.

The government has also made it clear that these policies are part of a broader action plan that includes visa facilitation, improved air and rail connectivity, and international promotion of its tourism and cultural resources. All of this is aimed at recovering and even surpassing pre-pandemic levels of tourism.

The effective implementation of this new reimbursement programme will be closely monitored to ensure its success, and the first reports of results are expected in the coming months. If it works as expected, it could become a replicable model for other strategies aimed at strengthening China's attractiveness as a global tourism destination.

With this step, China reaffirms its commitment to consolidate its position as one of the world's leading tourism hubs, offering international visitors not only a vast cultural and natural wealth, but also tangible economic benefits that make their travel experience more attractive.

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