China expands departure tax refund policy to more regions

China will roll out its departure tax refund policy in Dalian, a coastal city in northeast China, and in Hubei Province in central China from July 1, the Ministry of Finance said on Monday.

The policy allows overseas tourists to claim back value-added tax on eligible purchases made at designated tax refund stores before leaving China. Eligible regions can adopt the policy after filing with relevant government organs.

China began implementing the departure tax refund policy for overseas travelers in 2015. Since then, the scale of departure tax refunds has grown year by year, benefiting an increasing number of overseas travelers.

On April 27 this year, the country introduced a package of measures to optimize the policy, including measures lowering the minimum purchase threshold for refunds, raising the cash refund ceiling, expanding the network of participating stores, and broadening the range of products covered.

The country is also promoting a refund-upon-purchase service model, allowing eligible tourists to receive tax refunds instantly at retail outlets rather than waiting until they leave the country.

Official data shows that between April 27 and May 26, the number of departure tax refund transactions processed by the country's tax authorities jumped 116 percent year on year, and sales at tax refund stores climbed 56 percent.