A cap on purchase amounts eligible for tax refunds for foreign tourists is to be doubled in the hope that they would enjoy their visits more and spend more, the Ministry of Finance said last week.
From Jan. 1, foreign nationals can claim back the 5 percent business tax on purchases of NT$2,000 to NT$48,000 at cooperating shops, with the cap raised from NT$24,000, the ministry said, adding that the maximum was per store, per day.
Independent tourists account for the bulk of inbound travelers and the adjustments would allow them greater benefit from tax rebates, the ministry said.
The increasing number of independent travelers justifies the higher cap, the ministry said, adding that the change could galvanize shopping.
Foreign tourists are entitled to a partial tax refund on laptops, mobile phones, cosmetics and beauty items, which are generally cheaper than in places like Singapore, the ministry said.
They can request tax rebates for purchases at 2,000 retailers that have Taiwan Tax Refund certification, the ministry said.
Such outlets can be identified by posters on storefronts, it said.
Foreign nationals can apply for tax refunds at their port of departure for purchases from stores that do not have the certification, it said.
Popular shopping venues among foreign tourists include drugstore chains Cosmed (康是美) and Watsons (屈臣氏), as well as department store chain Shin Kong Mitsukoshi (新光三越) and the Taipei 101 Mall.
Rebates would be NT$1,966 after fees for purchases of at least NT$48,000, the ministry said, adding that tourists would be likely to spend that money in Taiwan.
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