Shanghai leads in departure tax refunds, boosting inbound tourism consumption

Shanghai has emerged as the top destination in China for departure tax refunds, with a significant surge in sales and refunds following the implementation of new policies.

Since the new measures to optimize departure tax refunds took effect in late April, Shanghai's departure tax refund sales have soared by 86 percent year-on-year, while total refunds have increased by 77 percent, securing its position as the leader nationwide.

The new policy has enhanced the convenience of tax refunds by raising the upper limit for cash refunds to 20,000 yuan ($2,788) and lowering the minimum purchase threshold for departure tax refunds from 500 yuan to 200 yuan. This has spurred consumption of both high-value goods and everyday items. For instance, Hermès stores in Shanghai have seen a more than 200-percent increase in sales eligible for tax refunds.

An international visitor uses a self-service machine for a departure tax refund application at the New World Daimaru in Shanghai's Huangpu district. [Photo/WeChat ID: shhuangpu]

Additionally, the policy has eased eligibility requirements for tax refund stores, allowing newly opened tax-compliant stores to participate. Shanghai now boasts over 1,200 tax refund stores, covering all 16 of its districts.

The city is also accelerating the expansion of "refund upon purchase" services, with new refund locations added in major shopping areas, significantly enhancing the shopping experience for international tourists.

Zhangyuan in Shanghai's Jing'an district sets up a service counter for instant tax refunds. [Photo/WeChat ID: jaxwzx]