China’s top tax authority recently released a new policy allowing overseas tourists to get tax refunds on goods purchased in “qualified areas”, reported ptnet.cn, a local news portal in Pingtan, Fujian province on July 4.

The website quoted sources saying that Pingtan is one of the pilot zones implementing the policy, meaning a tax rebate worth 11 percent of the purchase price will be offered to buyers.

Overseas tourists, as the State Administration of Taxation describes in the official document, refers to foreigners and Chinese nationals from Hong Kong, Macao and Taiwan, who have lived in the mainland less than 183 days.

The policy will relieve the tax burden on overseas tourists shopping in Pingtan and stimulate consumption. It will help promote Pingtan’s specialties on the international stage and attract more tourists, benefiting its tourism, service industry and economy, said an employee with the local tax bureau.

It is notable that tourists who want to enjoy the favorable tax policy can only make the purchase at local tax-free shops. There they must fill out an application following the purchase and claim the tax refund at customs upon departure.

Enterprises in Pingtan can apply to set up tax-free stores, which, according to the tax bureau, will drive up Pingtan’s revenue.