On June 1, the Central Committee of the Communist Party of China and the State Council issued the general plan for the construction of Hainan free trade port (hereinafter referred to as the plan). Dozens of preferential policies include the exemption of import tariff, import value-added tax and consumption tax for inbound goods purchased by island residents; the amount of tax-free goods purchased from islands is increased to 100000 yuan per person per year and varieties are increased.
Tax free revenue is expected to reach a new high
According to the data, since the implementation of Chinas tax-free policy for outlying islands in 2011, it has undergone six adjustments and improvements, with more than 12 million people shopping and a total sales amount of nearly 40 billion yuan.
There is no doubt that the new deal is good for the tax-free consumer industry. Analysts say that in the context of this years epidemic, the number of new off Island supplementary purchase models has broken through the limit. After the channels have been widened, the scale of off Island tax-free revenue is still expected to reach a new high this year.
From May 30 to 31, Han, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, came to the duty-free shop in Riyue square, Haikou, to learn about the implementation of the tax-free policy and the market sales of Hainans outlying islands.
He stressed that we should take multiple measures to promote the recovery of consumption, expand consumption channels and promote consumption return. On the basis of increasing duty-free shopping quota, we should improve relevant policies and market access standards, and vigorously promote the construction of Hainan international tourism consumption center.
As the epidemic subsided and tourism recovered, the popularity of duty-free shops in Hainan has gradually recovered. On June 4, the reporter of securities times u00b7 e company saw in the tax-free shop of the largest Sun Moon square in Haikou that after the mall opened at 10 a.m., there was an endless stream of consumers in the shop, including the most popular fragrant chemical products, and the consumers consulting and purchasing in front of the shelf.
We also learned the new policy of tax-free consumption for the first time. Zhang Ke, media director of Haikou duty free shop of China tax free group, told the securities times u00b7 e company that since there are no detailed rules for landing, the purchase of all duty-free products is still carried out according to the original rules, that is, the annual accumulative tax-free shopping limit for each passenger (including the resident passengers in the island) is 30000 yuan.
On February 20 this year, the duty-free shop in Riyue square has resumed operation. During the epidemic, people were controlled and temperature was measured and masks were worn. Zhang Ke said that at present, duty-free shops have basically recovered to the sales situation before the epidemic. In the past, tourists who went to Japan, South Korea and Hong Kong, China for shopping and consumption, because of the inconvenience of traveling outside the epidemic, also many of them transferred to Hainan for consumption, which has become an increase instead.
In the past, the tax-free quota in Hainan was only 30000 yuan, and consumers could only buy small luxury goods. With the quota raised to 100000 yuan, consumers can have more expensive luxury goods in their shopping cart. Chen, who has lived in Haikou for more than ten years, said.
It can be seen in the tax-free shop of Riyue square that in addition to fragrant products and some luxury brand jewelry, handbags and watches, there is no sales in the luxury stores with higher end and high unit price, which is also limited by the current tax-free shopping quota of 30000 yuan.
New pattern of tax exemption in Hainan Island
There are currently four duty-free shops in Hainan Island. On January 19, 2020, the tax-free shops in Riyue square and Boao of Qionghai in Haikou were officially opened, forming a new pattern of tax-free off Island together with the existing tax-free shops in Haiya Haitang Bay and Haikou Meilan Airport in Hainan.
According to the current tax-free policy for departing from the island in Hainan, domestic and foreign passengers who are at least 16 years old and travel to the mainland of China by air, train or ferry, including Hainan residents, can go to the duty-free shop for shopping and pick up the goods at the pick-up point with air tickets, train tickets and ship tickets. Among them, passengers who leave the island by air can pay a certain amount of tax guarantee according to the goods, namely Buy and take. Consumers who choose to shop first and then pick up the goods can pick up the goods at five pick-up points: Haikou Meilan Airport, Sanya Fenghuang airport, Boao airport, Xiuying port wharf and new port wharf.
China Travel group becomes the biggest beneficiary
Among many tourism enterprises, the most favorable one is China tourism group. In September 2018, China Tourism Group officially moved its headquarters to Hainan, where its total assets and total operating revenue increased significantly. By the end of 2019, China Tourism Group has invested and established 18 holding enterprises, another joint-stock company and 5 entrusted hotels in Hainan, with a year-on-year growth of 24.7% in total assets in Hainan and a year-on-year growth of 63.6% in total operating revenue.
And the latest plan, relaxing the tax-free shopping quota to 100000 yuan per person per year, and expanding the category of tax-free goods, is expected to push up the income of China Tourism Group in Hainan again.
After China tourism group completed the acquisition of 51% of the equity of Haiwai company, Haikou Meilan Airport duty free shop was included in the operation management. Haikou Riyue Plaza duty free shop and Boao duty free shop were newly established, together with Sanya duty free city and Meilan Airport duty free shop, forming the island wide duty free operation network.