China to expand tax rebate program in southern island Hainan

( English.news.cn )

Updated: 2011-05-19

Photo taken on March 23, 2011 shows a customer choosing cosmetics in a duty-free shop in Sanya, south China's Hainan Province. China's Ministry of Finance (MOF) announced Thursday that Hainan will implement a tax rebate program for tourists on a trial basis from April 20. The program targeted tourists 18 years old and above from home and abroad who would like to fly off the island to other places of China and set the rebate cap on commodities with a total value of no more than 5,000 yuan (762 U.S. dollars) per person each time. (Xinhua/Guo Cheng)

The tax rebate program was compiled jointly by the MOF, Ministry of Commerce, General Administration of Customs, State Administration of Taxation and relevant departments in Hainan Province.

The unveiling of the program came after China inaugurated a tax refund program to attract foreign tourists on January 1 this year. This program made foreign tourists as well as citizens from Hong Kong, Macao and Taiwan who have lived in China's mainland for no more than 183 consecutive days eligible for an 11 percent tax rebate on certain purchases.

Under this program, tax refunds could be received for purchases of 324 items across 21 categories, such as clothing, cosmetics, watches and jewelry. Commodities of wide consumption, like food, beverages, tobacco and alcohol, are not eligible for tax refunds.

In January last year, the State Council, or China's Cabinet, unveiled guidelines aimed at building Hainan into a top international tourism destination by 2020.

The tax rebate policy has been one of the most talked about policies concerning the island's tourism development.

Hainan was designated as a province in 1988 and became China's largest special economic zone in the same year. The island province enjoys preferential development policies and boasts year-round tropical weather, clean beaches, forests and diverse ethnic cultures.