Starting this 2016, the government of Xiamen, Fujian Province, can now offer sales tax refund to foreigners and residents of Taiwan, Macao and Hong Kong who will travel to the city, China Daily reported.
According to an announcement by the country's Finance Ministry, those who qualify for the policy are individuals who have stayed on the Chinese mainland for at most 183 days.
Authorities have set a price floor of 500 yuan for purchases made at a single outlet to trigger reimbursement. Nonetheless, used or unpacked commodities are not valid for refunds. The same applies for goods bought over 90 days prior to departure date.
The purchased goods must also be carried by the passenger in person or must be put in their checked luggage upon departure from the country.
Travelers can apply for an 11-percent tax rebate. The Industrial Bank's local branch or the Xiamen Bank--the appointed agencies tasked to handle the drawback procedure--will charge a 2-percent poundage fee.
The local government of Xiamen has named 10 key venues for the implementation of the new tax policy, including the Caishi lacquer threaded sculpture retail outlet, the Sumgo Tea shop, the Crowne Plaza Paragon Xiamen hotel, and three Edenus brand ceramic craft stores.
Currently, only two cross-border transportation hubs are permitted to handle the said transaction, namely, the Gaoqi International Airport and the Wutong passenger ferry port, which mainly serves people who travel between Xiamen and Taiwan's Kinmen.
The new policy is expected to boost local tourism in Fujian City. The move is in addition to the 72-hour visa-free policy for transit passengers and the round-the-clock customs clearance service at the Gaoqi airport.
The two initiatives launched last year have been helpful in increasing the number of stay-over tourists from abroad. For the first 11 months of 2015, the figure rose by 10.25 percent to 1.83 million.
Apart from Xiamen, Liaoning, Anhui, Tianjin, Fujian and Sichuan provinces are also permitted to implement the new tax policy.