Photos

China to expand tax rebate program in southern island Hainan

(English.news.cn)
Updated: 2011-05-19 18:00

Photo taken on March 23, 2011 shows customers choosing suitcases 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)

China's Ministry of Finance (MOF) announced Thursday that Hainan, a tropical island province in southern China, will implement a tax rebate program for tourists on a trial basis starting April 20.

The program sets the rebate cap on commodities with a total value of no more than 5,000 yuan (762 U.S. dollars) per person each time and is aimed at tourists 18 years old and older from both home and abroad who will fly to other destinations in China from the island.

Each eligible tourist can claim rebates twice a year, while island residents can claim rebates once a year.

The refunded taxes include customs duties, importation value added taxes and excise taxes, said a statement posted on the MOF website.

Tourists can also buy one item worth over 5,000 yuan per person each time provided they pay the commodity's import duty, according to the statement.

This program covers 18 types of imported goods including jewelry, artwork, wristwatches, perfumes, cosmetics, pens, glasses, scarves, neckties, wool fabrics, cotton goods, clothing, belts, bags, small leather goods, ca ndies and sporting goods.

The program was modeled on tax rebate programs practised by the Jeju island, the Republic of Korea, and Okinawa, Japan, but Hainan's scheme offers greater rebates, said MOF officials.