Foreign News - Hainan Tax Administration to create a Shopping Paradise

Foreign News - Hainan Tax Administration to create a Shopping Paradise

The implementation of the departure tax in Hainan Province, is China's first local tax rebate policy. According to the Chinese Ministry of Finance announced that foreign tourists coming to play in Hainan, according to specified conditions, purchase of 800 yuan, can be returned upon departure 11% VAT, the new policy applies to objects, including continuous residence in the Mainland, not more than 183 days foreigners, and Hong Kong, Macao tourists.

Tax Policy Department under the Ministry of Finance Deputy Director ZHENG new argument, the implementation of tax policy, helping improve the tourist island of Hainan as an international influence in the international arena and attract more foreign tourists to Hainan tourism, but also improve China's export tax rebate for the future system provides practical experience. Data show, Hainan in the food, housing, transportation, travel, shopping and entertainment elements of the six tourism, shopping and spending now accounts for only 20%. For the implementation of tax rebates to stimulate the visitors Hainan shopping, some people in the industry believe that most tourists to Hainan at present, are to be casual, to enjoy the sunshine and beaches, fewer people shopping, so shopping rebate policy, not very attractive.
Hong Kong has been a shopping paradise, visitors to Hong Kong for consumption as a major program, the benefits far more than other tourist attractions or activities, but the local shop to attract tourists all sides, the main entrance is free to pursue long-term tax policy, in addition to alcohol, car specific types of luxury goods will be taxed, but other goods Yigai tax, the measure will not only proceed from the tourism industry, but also with trade and other economic activities. As a result of long-standing tax exemption measures, resulting in a wide range of goods, and close to trend, the trend of global product launch of the pilot firms, therefore, to follow and chase other places to do shopping in Hong Kong posted, you can not do overnight.

Hainan launch departure tax and Hong Kong there is no much competition. However, Hainan is the departure in March last year applying for a rebate; get the State Council for approval. Local officials also disclosed for the mainland residents of the "islands duty free" policy will also be piloted in Hainan, if this view is correct, then the competition between the two places will be much more directly.

In recent years the rapid development of retail, recession in the West were not affected, the whole of mainland tourists to Hong Kong due to consumption, the current free exercise of consumers has become synonymous with the local mall, if you can for the future of Hainan mainland visitors, the introduction of "tax islands", though Even before the arrival time endanger the status of Hong Kong's shopping paradise, but the long-term competitive threat can not be ignored.

In addition, the first 11 months of this year, Hong Kong Customs cracked 22 cases of counterfeit drugs cases, more than half last year, but the total value of seized drugs was almost half surge, nearly 500 million, seriously damage the quality of the credibility of the Hong Kong market, thus restricting the tourism market development. On the face of the fertile farming situation was indisputable, the Hong Kong if he did not self-discipline, it will self-destruct at any time the status of tourist shopping paradise.