SAT Reports 186% Year-on-Year Increase in Foreign Tourist Tax Refunds in H1

Wang Daoshu, Deputy Director of the State Taxation Administration, stated at Monday’s State Council Information Office press conference on the theme of “High-Quality Implementation of the 14th Five-Year Plan” that from January to June, the number of departure tax refund stores across China multiplied, exceeding 7,200. During the same period, the number of foreign tourists receiving tax refunds rose by 186% year-on-year, while the sales volume and refund value of eligible goods increased by 94.6% and 93.2%, respectively, reflecting the continued rise in popularity of travel to China among international visitors.

Departure tax refunds refer to a policy under which foreign tourists can receive VAT reimbursements on goods purchased from designated refund stores when leaving the country. This policy can be implemented in all qualified regions upon registration with the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration.

Against the backdrop of growing external uncertainties, boosting domestic demand—particularly consumption—has become a key strategy to stabilize the economy. Expanding inbound consumption is expected to play a critical role within this framework. Since the beginning of the year, inbound consumption has been repeatedly emphasized in high-level meetings and by ministerial bodies. Local governments have continued to introduce relevant policies to enhance support for inbound spending.

On February 10, Premier Li Qiang chaired an executive meeting of the State Council to deliberate on measures to stimulate consumption. The meeting identified consumption as central to expanding domestic demand and strengthening the internal economic cycle. Notably, it marked the first official mention of “developing inbound consumption.”

On April 26, the Ministry of Commerce, the Ministry of Finance, the Ministry of Culture and Tourism, along with three other agencies, jointly issued a notice entitled “On Further Optimizing Departure Tax Refund Policies and Expanding Inbound Consumption.” The notice introduced eight measures to improve tax refund services for inbound tourists.

According to a statement from the Ministry of Commerce dated July 21, the Director of the Department of Consumer Promotion noted that initial outcomes from the optimized refund policies are now visible, with inbound consumption steadily growing. The Ministry, in collaboration with relevant departments, has launched the “Shopping in China” campaign, advanced the cultivation of international consumption center cities, refined the departure tax refund mechanism, and promoted a consumer-friendly international environment. Interest in “Traveling in China” and “Shopping in China” continues to grow.

Data from the National Immigration Administration shows that in the first half of 2025, the number of foreigner entries and exits reached 38.053 million, an increase of 30.2% year-on-year. Of these, 13.64 million were visa-free entries, marking a 53.9% increase from the previous year. The State Taxation Administration confirmed that the sales volume of tax refund goods increased by 94.6% year-on-year during the same period.

On July 3, the Shanghai Municipal Commission of Commerce, together with five other departments, released the “Action Plan for Optimizing the Departure Tax Refund Consumption Environment in Shanghai (2025–2027).” The plan seeks to improve refund service infrastructure in Shanghai to strengthen its appeal as an international consumption destination and bolster the tourism economy.

On July 26, the Fujian Provincial Department of Commerce announced that the province will accelerate the development of departure tax refund stores. Efforts will focus on identifying and promoting stores with market potential that feature international brands, popular domestic goods, time-honored Chinese brands, intangible cultural heritage items, gift and specialty products, and cultural and creative goods. The province also aims to streamline the store registration process and establish a reasonably distributed and consumer-convenient network of refund outlets.