Shanghai refunds $10.15m in tax to overseas tourists

Shanghai has refunded approximately 70 million yuan tax to over 48,000 overseas tourists since July 1, 2015, when it initiated the overseas tourist tax refund policy. [Photo/chinanews.com]

Shanghai has refunded approximately 70 million yuan ($10.15 million) in tax to over 48,000 overseas tourists since July 1, 2015, ranking top for this figure in China, according to local tax authorities.

Three years ago, the city initiated the tax refund policy with the aim of giving an improved shopping experience to overseas tourists, and encouraging higher overseas tourist numbers.

At present, there are 359 tax refund shops in the city, meaning overseas tourists can get tax refunds on purchases made there.

Two such shops are the Dolce and Gabbana shop at Plaza 66 and Wuliangcai Glasses Shop on Nanjing East Road, both in Jing’an district, and it is expected that this number will increase in the future.

"We have been encouraging more shops with a strong brand influence, competitiveness and creativity to join our increasing list of locations in Shanghai to offer tax refunds to overseas tourists," said a local tax official.

To add more convenience for tourists, the city employed a new online tax refund system developed by the State Administration of Taxation last October, based on which people who have not shopped in Shanghai but have shopped in other parts of China that have signed up to the system can still get refunds in the city. These places include Beijing and Hainan.

Tax refunds can be obtained at the city's two international airports, Shanghai Railway Station, Wusongkou International Cruise Terminal and Shanghai Port International Cruise Terminal.

A Hong Kong tourist who was applying for a tax refund at Shanghai Hongqiao International Airport on July 1 said, "I have witnessed the increase of tax refund shops and the increasing diversity of tax refund commodities in Shanghai over the past years. Some products are now cheaper than in Hong Kong due to the tax refund policy."

It is expected Shanghai will continue to expand on its tax refund policy to further satisfy the needs of overseas tourists and to make "Shopping in Shanghai" a well-known brand for the city globally.