Global Times: What benefits does China's upgraded departure tax refund policy offer?

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Jun 11, 2025, 10:02 ET

BEIJING, June 11, 2025 /PRNewswire/ -- It is reported that the departure tax refund policy has been upgraded again, and many netizens are envious that overseas tourists can come to China and enjoy a pleasant shopping spree. What benefits can the "upgraded" departure tax refund policy bring to overseas tourists? And what impact will it have on domestic consumers? This is a question posed by a reader on people.cn.

Data released by the State Taxation Administration on Tuesday showed that during the first month of the implementation of the new departure tax refund policy, from April 27 to May 26, the number of departure tax refunds handled by tax authorities nationwide increased by 116 percent year-on-year, and total sales at tax refund stores rose by 56 percent year-on-year. The number of "instant tax refund" transactions surged 32 times, compared to the same period last year, and 1,303 new departure tax refund stores were added.

Indeed, departure tax refunds have recently received widespread attention and are regarded as a significant factor in enhancing the appeal of "China Travel."

Generally speaking, the prices of goods in most countries include a value-added tax (VAT). Departure tax refund refers to the partial reimbursement of the VAT paid by overseas tourists for goods purchased in the tourist destination country. According to China's VAT level, the general tax refund rate for goods is 11 percent, which is equivalent to an additional 10 percent discount after the tax refund.

Boosting consumption

Optimizing departure tax refund policy to expand consumption is a common international practice. Chinese consumers can also enjoy departure tax refunds when traveling abroad in many countries. Now, further optimizing the departure tax refund policy reflects China's proactive attitude toward embracing the world. It helps unleash the consumption potential of overseas tourists, and ensure they have a pleasant travel and shopping experience.

The "upgraded" departure tax refund policy demonstrates China's sincerity. Lowering the minimum refund threshold to 200 yuan ($27.82) makes it easier for overseas tourists to meet the tax refund criteria when shopping at designated stores. Even small purchases of souvenirs or gifts, as long as the cumulative amount reaches 200 yuan, are eligible for a refund.

Increasing the cash refund limit to 20,000 yuan, combined with mobile payment, bank card and other options, provides more flexible payment choices for overseas tourists who buy high-value goods.

Tax refund stores have been added in large commercial areas, tourist attractions, airports, and other locations across the country. Meanwhile, international famous brands and trendy domestic products that overseas tourists have long anticipated are becoming increasingly available.

The implementation of the "upgraded" departure tax refund policy showcases China's confidence and determination in continuous opening-up.

From continuously optimizing visa-free policies and advancing cross-border payment facilitation to further enhancing the departure tax refund policy, along with the continuous improvement of supporting services in lodging, catering and transportation, a comprehensive "combination of measures" has been implemented, which can be touched, felt and accessed by foreign tourists and further improve their favorable impression of China.

Exploring the charm of ancient towns, shopping for unique cultural and creative products, and savoring delicious cuisine, the rich and diverse aspects of Chinese civilization serve as the cultural driving force for inbound consumption. A series of policies, including visa-free entry, convenient payment methods, and the departure tax refund policy, have ignited the surging momentum of inbound consumption.

Data showed that in the first quarter, the number of entries made by foreign nationals through ports across the country exceeded 9.2 million, a year-on-year increase of 40.2 percent, of which 71.3 percent were visa-free.

The tourism boom is being transformed into a consumption boom, which in turn drives sales growth and improves the quality of development.

In May, at the Shanghai No.1 Department Store, the number of departure tax refund transactions increased by 338 percent year-on-year, and the transaction amount rose by over 206 percent. Among them, the number of transactions for time-honored products and trendy domestic products increased by 407 percent year-on-year.

At the DJI flagship store in the China World Mall in Beijing, the sales of departure tax refund products increased by 77 percent month-on-month. More people are getting to know "Made in China" and recognizing "Chinese brands."

Confidence in opening-up

High-quality Chinese products have become an "implicit endorsement" for "China Travel," providing strong evidence that the allure of "Made in China" is steadily increasing. This will undoubtedly boost the confidence of domestic brands in their development and stimulate greater innovation.

Transforming the "online traffic" of "China Travel" into "repeat visits" will also generate more "growth." A small step in upgrading the tax refund policy represents a giant leap in opening-up development.

We have every reason to anticipate that while the "upgraded" departure tax refund policy brings tangible benefits to overseas tourists, it will also introduce more positive changes to the domestic market. A welcoming and hospitable China is certain to create even more favorable conditions for its own development.

Cong Yi, a professor at the Tianjin School of Administration, told the Global Times that the rapid expansion and structural upgrade of China's consumer market vividly reflect its continuous efforts in opening-up. Notably, cultural and tourism-related consumption is on the rise, mirroring the optimized consumption environment and growing consumer confidence.

With a secure, stable, and efficient market, China is attracting global consumers. The upgraded tax refund policy is making inbound consumption an essential part of the domestic market, which not only bolsters domestic demand and taps consumption potential but also deepens cultural and social exchanges, Cong said.

Overseas consumers can access high-quality products that may be unavailable at home, while local cultures and innovative products can gain global exposure, enhancing the influence of Chinese brands. This two-way flow of consumption and culture meets diverse global needs and showcases China's cultural confidence and market vitality on the global stage, Cong added.