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The positive list of tax exemptions for island residents in the first half of 2021 confirms that Hainan’s tax-free consumer groups are expected to expand.
Our reporter Pei Yu reports from Beijing
Even as the new duty-free policy in the outer islands since July 2020 has triggered a round of consumption boom in Hainan, in late 2020, when three new duty-free shopping venues were opened in Hainan, they still maintained a state very hot sales. The newly opened duty-free stores are packed with people, and there are times of queues and even rushed purchases.
However, this is far from all the good expectations of Hainan’s duty-free shopping market, because local residents in Hainan cannot buy duty-free goods without leaving the island. Currently, the relevant central authorities and the Hainan provincial government are formulating a “positive list” for local Hainan residents to enjoy preferential tax-free shopping policies without leaving the island. By then, Hainan’s duty-free consumption group will be further expanded.
According to information obtained by reporters from China Business Daily, this positive list is expected to be published in the first half of 2021. Hainan, on the other hand, is ambitious when it comes to duty-free consumption. According to Hainan’s official planning and vision, it is expected that by 2030, the duty-free consumption of the Hainan Free Trade Port will reach the level of 700-800 billion yuan.
Potential tax-free consumer groups
In July 2020, the duty-free consumption quota for the outer islands of Hainan was increased to 100,000 yuan per year per person, and the consumption boom began in the Hainan Free Trade Port. At the end of December 2020, China Service Duty Free and Shenzhen Freedom obtained the tax exemption license, and three more tax-free shopping venues were officially opened in Hainan.
The reporter learned that the current duty-free consumer sales in Hainan have basically remained at a level of around 110 million to 120 million yuan per day in the past four months, and may reach a level of around 130 million yuan a day in better condition. A person close to the Hainan provincial government told reporters that the sales level “has entered a relatively stable state.”
Relevant data shows that after the launch of the new duty-free shopping policy in the outer islands in July, until October 31, the number of duty-free consumers in the outer islands increased by 58% compared to the year above, while the amount of consumption increased by 248%. As a result, the consumption of duty-free products has become the “leader” in Hainan’s economic recovery after the outbreak.
However, there is still a large part of the purchasing power of valuable tax-free consumption that has yet to be released, that is, the purchasing power that local Hainan residents have accumulated without leaving Hainan Island. A person who has been involved in the duty-free goods business in Hainan for a long time told reporters that according to current policy, local Hainan residents cannot buy duty-free goods temporarily without leaving the island. of Hainan.
“If Hainan residents have airline tickets and ferry tickets to leave Hainan Island, they can buy them with an annual limit of 100,000 yuan per person according to the current tax exemption policy for the outer islands. However, If they don’t leave Hainan Island, Hainan Island residents won’t be able to enjoy it. With the current tax exemption policy, local Hainan residents still have a strong demand for tax exemption, “he said.
The relevant departments and the Hainan side are working to resolve this situation. The solution is to formulate a “positive list” for local Hainan residents to buy duty-free products without leaving the island. This positive list is currently under development. Our reporter’s information shows that “open” tax-free shopping for local residents in Hainan through the positive checklist system has been firmly established.
The first half of 2021 is expected to end
Through the positive list system, “open” tax-free shopping to Hainan Island residents has become a “fixed” general trend. So the next question is, when will this “positive list” end?
According to information requested by reporters from various sources, this positive list has been developing and if all goes well, it is expected to be finalized in the first half of 2021. By then, local Hainan residents will be able to purchase duty-free products. without leaving the island, thus forming a new group of people with purchasing power for duty-free consumption in the Hainan Free Trade Port.
