BEIJING and Shanghai will offer tax refunds on purchases made by overseas visitors starting yesterday, kicking off a program to bolster tourism and sales of some items popular with foreign visitors, such as souvenirs, silk, porcelain and traditional Chinese medicine.

    The rebate program could significantly stimulate the development of Beijing’s tourism, which has seen slow growth in spending and a decrease in visitors, said Wang Yue, deputy director of the Beijing Municipal Commission of Tourism Development.

    “The tax refund policy is a new step in building Beijing as an internationalized tourism destination,” Wang said.

    Tourists from overseas, as well as those from Hong Kong, Macao and Taiwan who have lived on the Chinese mainland for no more than 183 days, will be eligible for an 11 percent rebate on consumer goods bought at designated stores.

    So far, 86 stores in Beijing and 27 in Shanghai have qualified for the program. The minimum purchase to obtain a tax refund is 500 yuan (US$80) at any one store in a day.

    Offering tax refunds has long been an important way for cities and countries to attract overseas tourists. More than 50 countries and regions have tax refund polices, including the United States, Japan, South Korea, Canada, Brazil and Thailand.

    However, Zhang Guangrui, honorary director of the Tourism Research Center at the Chinese Academy of Social Sciences, questioned whether the tax refund program would produce the desired results. He said the biggest obstacle to increasing overseas visitors’ spending is a lack of sought-after products.

    (China Daily)