Beijing: China says it will lower the tax rebate threshold for foreigners visiting the country, an effort to boost consumption as Beijing attempts to offset some of the damage of a trade war with the United States.
Tourists who spend at least 200 yuan or about US$27 on the same day at the same store will be eligible for the rebate, according to a joint statement from the Finance Ministry, the People’s Bank of China and other government departments.
The current threshold is 500 yuan.
The maximum rebate amount for cash claims will be increased to 20,000 yuan, it added.
The government will also expand the list of eligible tax-refund stores and streamline procedures to make it easier for tourists to claim the rebate, according to the statement.
China is increasingly attempting to encourage more spending as it attempts to soften the damage of a series of tit-for-tat trade restrictions with the United States.
At a closely watched government meeting last year, senior government officials had announced that boosting consumption and stimulating domestic demand was its top priority.
Spending by foreign tourists accounted for around 0.5% of China’s gross domestic product last year, a lower ratio than seen in many major economies, said Sheng Qiuping, a vice-minister at the Commerce Ministry, during a briefing in Beijing yesterday. — Bloomberg
