On April 27, 2025, six departments including China’s Ministry of Commerce unveiled a set of refined departure tax – refund policy measures. These initiatives are designed with multiple goals in mind: attracting a larger number of overseas tourists, stimulating domestic consumption, and strengthening China’s position in the global tourism market.
The policy modifications are multi – faceted. Firstly, the tax – refund threshold has been lowered from a relatively high level to 200 yuan. This change enables more small – value purchases to qualify for tax refunds. Secondly, the refund methods have become more diverse. Currently, they encompass mobile payments, bank cards, and cash. Notably, the upper limit for cash refunds has been raised from 10,000 yuan to 20,000 yuan. Thirdly, the number of departure tax – refund stores will be expanded. These stores will be strategically located in major shopping districts, tourist attractions, airports, and ports. Moreover, these stores are being encouraged to offer a wide range of goods, including traditional Chinese medicines and intangible cultural heritage products, along with other distinctive items.
Data from the National Bureau of Statistics shows that in 2024, China’s inbound tourist spending surpassed 94.2 billion US dollars, representing a year – on – year increase of 77.8%. In the first quarter of 2025, the number of inbound tourists reached 9.215 million, a year – on – year rise of 40.2%. The implementation of this new policy is anticipated to further boost inbound tourism consumption.
