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Cabinet mulls changes duty-free rules

Tax-return shopping * Foreign tourist are eligible for a 5 percent tax rebate on purchases of more than NT$3,000 from stores displaying the TRS logo. * Under the proposed changes, rebates could be given directly by department stores, not just at international airports. *Local specialty products may be added to the tax-rebate list. * Minimum capitalization needed for duty-free stores may be reduced.

As part of efforts to double tourist arrivals, the Cabinet is considering allowing foreign tourists to receive their tax rebates directly at department stores instead of at airports upon departure.

According to the government's original measures formulated in October 2003, foreign tourists who spend NT$3,000 or more in the same shop with a tax-return shopping (TRS) logo and take the goods out of the country within 30 days will be eligible for the tax rebate at the airport upon departure.

But at a Cabinet meeting held over the weekend, the Tourism Bureau suggested the simplification of these measures to boost tourism, said Council for Economic Planning and Development Vice Chairman Thomas Yeh (葉明峰).

The Ministry of Finance is planning to include local specialty products, such as ceramics, wooden sculptures, tea and marble items, in the tax-rebate list, Yeh said.

He said foreign tourists would be able to enjoy a 5 percent tax rebate as long as their purchases exceed NT$3,000.

The ministry is also considering reducing the minimum capitalization to open a duty-free store from NT$100 million to NT$50 million, and the minimum amount to open a distribution center from NT$300 million to NT$200 million, Yeh said.

The ministry will complete its revision of the relevant measures within two months, he said.
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