China launches tourist tax refund scheme

BEIJING -- Overseas visitors can now claim tax refunds on purchases across China, the Ministry of Finance (MOF) announced on Friday, to boost inbound trips and domestic consumption.

According to the plan, foreign tourist and those from China's Hong Kong, Macao and Taiwan who have lived in the Chinese mainland for no more than 183 days -- can receive a rebate of 11 percent on consumer goods purchased at designated department stores.

The minimum purchase for a tax refund is 500 yuan (about $82) at any one store in one day.

China started a pilot tax refund program in south island province of Hainan on Jan 1, 2011.

"The expansion of the program will spur inbound trips and boost the export of China-made commodities," said Liu Shangxi, a senior researcher with the MOF.