BEIJING: Shanghai has proposed offering a tax refund to foreign tourists who spend more than 500 yuan, or $80, at designated shops in the city starting later this year.
Yang Jinsong, director ofthe Shanghai Tourism Administration told Shanghai Daily that the proposed refund will be the equivalent of 11 percent of the amount spent. Authorities have already started working with local shops, said Yang said, which will be at scenic spots.
In August, the State Council issued guidelines to promote tourism industry reforms, including a national increase of a tax refund plan first tested in south China’s Hainan Province.
Foreign citizens and visitors from Hong Kong, Macau and Taiwan who remain in China for no more than 183 consecutive days, and whose purchases reach a certain amount at designated stores, will also be eligible for the refund, reports Shanghai Daily. But this is only if they leave China within 90 days after buying the goods, according to the guidelines.
In related news, foreign direct investment (FDI) in the Chinese mainland increased 11.3 percent during the first quarter of 2015 compared to the same period last year, reports China state news agency Xinhua. FDI totaled $34.88 billion for the quarter, the Ministry of Commerce (MOC) announced Thursday.
Despite the increase, the FDI growth decelerated from a 17 percent rise during the first two months of the year. However, this still far exceeded the annual growth rate of 1.7 percent posted for the same period the previous year.
Service industry FDI for the quarter totaled $21.59 billion, a 24.1 percent rise from the same quarter last year. This accounted for 61.9 percent of all FDI during the period, reports Xinhua. In the service sector, financial, distribution and transport services attracted the most investment.
In addition to the strong FDI growth, the number of newly registered foreign-funded companies increased 22.4 percent in the first three months to 5,861. China’s Hong Kong Special Administrative Region (SAR), the Republic of Korea, China’s Taiwan, Singapore, Japan, the U.S., Germany, Britain, France and Saudi Arabia were the top 10 contributors during the quarter.
