At least 182 shops in Shanghai are now offering tax refunds to foreign tourists who will be spending more than Rmb500 (US$77) during their visit in the city, the Shanghai Commission of Commerce has revealed.

According to officials, the shops are located in Shanghai's major commercial spots, scenic areas, transport hubs, and other areas where there are huge gathering of foreign tourists.

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The first batch of 27 stores began offering tax refunds on 06 December and had already given out 2,500 tax refund application forms to foreign tourists.

The stores that are participating in the tax refund scheme offer various products, including everything from clothes to jewelry, electronic goods, silk, and cosmetics, authorities said.

Under the scheme, foreign tourists are entitled to an 11 percent refund on purchases at a single shop by a single person in one day. The purchases should total Rmb500 or more, the People's Daily Online has reported.

While the published refund rate is 11 percent, the actual refund is only 9 percent because foreign tourists will have to pay 2 percent administration fee to avail of the tax scheme.

Participating stores can easily be noticed because of the "Tax Free" sign that hang in store doors and display windows, the commission added.

Foreign tourists who applied for tax refunds can claim their refunds at Shanghai's two airports.

The Shanghai commerce commission added that more details and information about the tax refund scheme will be released in the coming days.

Shanghai now joins six other destinations in China to offer tax rebate program for foreign visitors. According to the Ministry of Finance, the tax refunds scheme is now in effect in the provinces of Liaoning, Anhui, Fujian, and Sichuan, the municipality of Tianjin, and the city of Xiamen.

TagsChina Tax Refund, China Tax Rebate, china tax, China Foreign Tourists