A few provinces in China have started a tax refund program for foreign tourists since April 1st. The Qingming festival or Tomb Sweeping Day, is the first holiday after the new tax refund policy.
The regions include Qingdao, Shenzhen, Jiangsu province, Shanxi province and Yunan province. South China's Shenzhen has already seen many foreign tourists lining up to get their consumption tax back.
More regions in China are starting to play the tax card to attract more foreign tourists. Northeast city Qingdao, and South China's Shenzhen have joined three other provinces to allow tax refund for foreign visitors.
"Tax refund policy is good news to the retail industry, especially to some industries that are unique to Shenzhen. For example, watches, jewellery. It will have a positive effect on them," said Wu Qingbiao, Vice President of Shenzhen Retail Business Association.
Most tax refund claim centres are located in the airports of the five cities, some are also in tax-free shops in the CBD areas of these regions. this will benefit local businesses as well.
"The tax refund policy erases price differences of products inside and outside of China. It is an good incentive to boost consumption," said Xiong Kun, Director of Tax Return Claim Centre.
Before this round of policy changes, Beijing Shanghai and Hainan have already kicked off similar programs. According to official statistics, nearly 6500 foreign tourists have gotten tax refund worth more than 100 million yuan.
