China lowers tax refund threshold for tourists in bid to boost consumer spending – Times of India-OxBig News Network

In an effort to stimulate domestic consumption amid ongoing trade tensions with the United States, China has lowered the minimum purchase amount required for foreign tourists to qualify for tax refunds.
Starting Sunday, international travellers can apply for tax rebates on purchases of just 200 yuan (about $27) made at the same store on the same day, down from the previous threshold of 500 yuan (about $69), according to a joint statement released by the Ministry of Commerce and other authorities.
The upper cash rebate limit has also been doubled to 20,000 yuan ($2,745), while the government plans to increase the number of designated tax refund shops and simplify the refund process. In areas heavily frequented by tourists, local governments are being encouraged to establish immediate refund points for faster service.
Speaking at a news conference, Vice Minister of Commerce Sheng Qiuping said inbound tourism spending made up only about 0.5% of China’s GDP in 2024, far below the 1%–3% range seen in other major economies—signalling room for growth. He noted that foreign tourist spending in China surged to $94.2 billion last year, marking a 77.8% increase.
China’s economy grew by 5.4% year-on-year in the first quarter, buoyed by strong export activity ahead of fresh US tariffs. However, analysts expect a slowdown as tariffs of up to 145% on Chinese goods take hold. In response, Beijing has imposed 125% duties on US exports and ramped up domestic measures to boost consumption, including subsidies for car and appliance trade-ins and increased funding for housing and other financially strained sectors.