China now offers instant tax refunds to tourists in bid to boost consumption Here s how it works

BEIJING – Visitors to China might soon find it easier to claim tax rebates at store checkouts – and that could mean a little extra cash to spend during their trip and fewer queues at the airport.

Experts say this could boost the economy, but the key will be getting more retailers on board with the programme.

China recently revised its tax rebate policy to allow foreign tourists to receive their tax refunds instantly at eligible stores, rather than only at the airport, and lowered the minimum spending required for such claims.

Since April 27, tourists who spend at least 200 yuan (S$36) at the same store on the same day are eligible for the instant tax refund, down from the previous 500 yuan.

The maximum cash refund amount has also been raised from 10,000 yuan to 20,000 yuan.

Refunds can be received instantly through mobile payments such as WeChat and Alipay’s digital wallets, credit cards and in cash.

Previously, tourists had to get paper forms and receipts in order, and could receive the refunds only at the tax refund counter at the airport right before leaving the country.

The catch? Not all shops offer this service, but Chinese authorities said they are working to broaden the list of such tax-refund stores in major shopping areas, pedestrian streets, tourist sites, resorts, cultural venues, airports, passenger ports and hotels.

Goods eligible for refunds include luxury items, those from time-honoured Chinese brands such as traditional Chinese medicine pharmacy Tong Ren Tang and silk store Rui Fu Xiang, craft, cultural and heritage items, renowned Chinese consumer goods and sports products. Food and beverage stores are not included in the list.

Chinese state media China Daily noted that a tourist who buys a Huawei Mate XT smartphone with an original price of 23,999 yuan,