Hainan Official: 5,000 yuan rebate cap may be adjusted if necessary
Tourists to China's southern island of Hainan will soon be able to claim back taxes on imported goods they purchase there. The Hainan provincial government announced on March 24 a tax refund scheme, to boost tourism and consumption.
All visitors to Hainan Province aged 18 or up, who depart the island by plane to another location on the mainland, can apply for the refunds. But tourists bound for foreign destinations can not.
The scheme, which comes into effect on April 20th, covers 18 types of imported items, including jewelry, handicrafts, watches, perfumes and cosmetics.
The rebate cap is 5,000 yuan each time. Visitors living outside the province can claim the tax refund twice a year, while local residents can only claim it once. Tourists can receive a partial rebate for amounts exceeding 5,000 yuan.
China's Ministry of Finance said the scheme is part of the province's plan to build the island into an international tourist destination.
Shen Shuhai, Deputy Director of Tariff Department of Ministry of Finance said "The policy will be conducive to the improvement of Hainan's travelling environment. It will also expand Hainan's retail revenue. It will boost Hainan's tourism competitiveness."
Chinese tourists outside the tropical island are interested in this new policy.
One Beijing citizen said "The policy is so attractive. Especially for girls."
But some tourist believe the 5,000 yuan rebate cap is too low. Officials from the tax department of the Ministry of Finance have responded to this requirement, saying the current rebate cap is merely a trial amount. And the government will make timely adjustments if necessary.
Hainan adopted a tax rebate policy for foreign tourists on January 1st this year. Since foreign tourists account for less than 3 percent of visitors to Hainan, the policy failed to produce the desired effect. Local governments are hoping the expanded policy will attract more Chinese visitors to the province.