Shanghai's tourism authorities are considering allowing a number of stores that sell time-honored brands and traditional products to join the new duty-free sales scheme in a bid to shore up flagging sales.
Since July, tourists visiting Shanghai have been able to claim VAT refunds on purchases made at 27 shopping centers and individual shops selected to take part in the scheme. The only condition is that they spend at least 500 yuan (US$80).
Cheng Meihong, deputy director of the Shanghai Tourism Administration, said the idea is to give local, often small-scale shops that sell locally produced goods, like Lantang shoes or Pechoin face cream, the chance to benefit from the millions of people who visit the city every year.
"Many of these products make ideal gifts or souvenirs, so they are perfectly suited to the tourism market," she said.
The majority of the outlets already included in the scheme are based in downtown areas and sell global brands that have little local significance, she said.
Cheng declined to say how many new stores might be added to the scheme as the matter is still under discussion.
Under the tax promotion, tourists are entitled to claim an 11 percent tax refund on all purchases of 500 yuan or more made at a single store on a single day.
