China lowers minimum amount for tax refunds for tourists to boost spending

BEIJING – China announced a little threshold for taxation refunds for overseas tourists among a bid of policies connected Sunday to boost depletion arsenic its system comes nether pressure during a trade war betwixt Beijing and Washington.

Travelers tin use for a taxation refund if they walk 200 yuan (about $27) astatine the aforesaid store connected the aforesaid time and conscionable different requirements starting Sunday, according to a associated connection by the Ministry of Commerce and different authorities. Previously, the minimum magnitude was 500 yuan (about $69).

The precocious bounds for their taxation rebate successful currency besides has been doubled to 20,000 yuan ($2,745).

The authorities volition grow the sum of taxation refund shops and streamline the procedures. Officials promote immoderate regions to acceptable up refund points for travelers to get rebates instantly aft their purchases successful areas highly concentrated with tourists, the connection said.

China's Vice Minister of Commerce Sheng Qiuping told reporters successful a quality league that inbound tourer depletion accounted for astir 0.5% of China's gross home merchandise successful 2024, portion figures successful different large countries ranged betwixt 1% and 3%. That indicated a large imaginable for growth, Sheng said.

Last year, inbound tourists' spending deed $94.2 billion, up 77.8%, helium added.

China’s system expanded astatine a 5.4% yearly gait successful January-March, the authorities said earlier this month, supported by beardown exports up of U.S. President Donald Trump’s accelerated increases successful tariffs connected Chinese products.

But analysts expected the world’s 2nd largest system would dilatory importantly successful the coming months arsenic tariffs arsenic precocious arsenic 145% connected U.S. imports from China instrumentality effect. Beijing has deed backmost astatine the U.S. with 125% tariffs connected American exports, portion besides stressing its determination to support its ain markets unfastened to commercialized and investment.

China has stepped up efforts to spur much user spending and backstage assemblage concern implicit the past months, doubling down connected subsidies for car and appliance trade-ins and channeling much backing for lodging and different cash-strapped industries.

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