FX.co ★ China Lowers Minimum Tax Refund Threshold for Tourists

China announced on Sunday a strategic adjustment to its tax refund policy for foreign tourists, a move aimed at invigorating inbound consumption against the backdrop of subdued domestic demand. Effective immediately, the minimum tax refund threshold for overseas visitors at the same tax-refund location on a single day has been reduced from CNY 500 to CNY 200, as detailed in a joint statement by the Ministry of Commerce and other relevant departments. Additionally, the maximum cash tax rebate available has been increased to CNY 20,000. The government is set to foster an increase in tax refund outlets across popular shopping districts, tourist attractions, airports, and hotel facilities. According to China's Vice Minister of Commerce, Sheng Qiuping, spending by inbound tourists surged by 77.8% last year, reaching USD 94.2 billion.