Beijing set to raise duty-free limit for mainland tourists in Hong Kong but figure ‘far below’ industry hopes
- Industry representatives hope limit will be increased to 30,000 yuan but insider says it could even be under 20,000
Beijing is planning to increase the 5,000 yuan (US$688) duty-free shopping allowance for mainland Chinese tourists visiting Hong Kong, but the amount will be “far below” the 30,000 yuan proposed by industry representatives in the city, government sources have said.
Visitors from across the border currently need to pay tax of 13 to 50 per cent to the mainland government for purchases made in Hong Kong above a threshold of 5,000 yuan per trip, a measure introduced in 1996.
Tourism and retail industry insiders have been urging mainland authorities to increase the threshold since the reopening of borders after the pandemic as big-spending visitors were found to be opting for more cultural experiences rather than pure shopping. The city’s currency is also expensive because it is pegged to the US dollar.
There were hopes the limit would eventually be increased to the level of Hainan Island’s current 100,000 yuan per year, with a rise to 30,000 yuan in the first phase.
An increase to 30,000 yuan would be in line with the change Hainan got in 2018. The duty-free allowance for the island province – also a popular destination for mainland travellers – rose from 5,000 yuan, an amount in place since 2011.
But a source familiar with the matter said Hong Kong’s initial increase would be “far below” 30,000 yuan and could even be under 20,000 yuan.
