Tax refund reforms boost inbound visitors spending

China's inbound consumption surged in 2025 as tax refund reforms sharply boosted spending by overseas visitors, with the number of foreign tourists claiming departure tax refunds jumping 305 percent year-on-year, according to the State Taxation Administration on Monday.

Sale of tax-refunded goods rose 95.9 percent year-on-year, while the amount of refunds issued climbed 95.8 percent, the STA said, pointing to stronger shopping demand from inbound travelers.

The administration attributed the rebound to a package of measures aimed at improving the shopping experience for foreign visitors, including lowering the minimum purchase threshold for tax refunds, raising cash refund limits, simplifying store registration requirements and expanding "instant tax refunds" at the point of sale.

The reforms have unlocked greater inbound consumption potential as China seeks to bolster domestic demand and support broader recovery in the services and tourism sectors, the tax authority noted.

Invoice data also showed sales revenue for daily-use appliances, such as refrigerators, rose 17.4 percent year-on-year, while kitchen and bathroom equipment, including gas stoves, climbed 12.9 percent. Revenue from mobile phones and other communications equipment jumped 18.6 percent.

Demand for new energy vehicles remained strong, with unified motor vehicle sales data showing a 24.3 percent increase in sales volume for new energy passenger cars compared to a year earlier in 2025, while sales revenue rose 21.1 percent year-on-year.