The Ministry of Finance is considering amending current regulations to make it easier for foreign tourists to receive sales tax refunds, sources familiar with the matter said Aug. 15.
Under present regulations, tourists are entitled to receive a 5-percent sales tax refund at their point of departure, provided they have made purchases worth NT$3,000 (US$93.87) or more during their stay on the island.
The new rules would reduce the minimum purchase amount to NT$1,000, and would allow tourists to receive refunds in New Taiwan dollars at designated Tax Refund Stores located throughout the island.
“Loosening the tax refund policy is expected to stimulate consumption and encourage foreign visitors to shop more by using the refunds they receive,” an MOF official said.
Sources believe such a move would indirectly result in increased tax revenues for the government while cutting down on the time passengers spend waiting in line at airports.
Analysts said the proposed initiative seems targeted at tourists from mainland China, the biggest spenders on average of all tourists.
The tax refund policy could be passed by the MOF by the end of this year, officials said.
According to statistics, tourists filed more than 260,000 tax refund applications in 2009 for purchases worth more than NT$8 billion.
This year could surpass last year’s record, as more than 180,000 refunds were filed in the first seven months of 2010 alone, for purchases worth more than NT$5.4 billion. (AW-HZW)