Chinese tourists are set to benefit from expanded duty-free shopping privileges in Hong Kong, as Beijing plans to increase the current purchasing limit up to sixfold, according to a report from Hong Kong media outlet Ming Pao.
Unnamed sources cited by Ming Pao indicate that the Chinese government is expected to soon announce an adjustment in the duty-free shopping quota, currently set at RMB5,000 ($688), to a new threshold “lower than RMB30,000 ($4,128).”
While Hong Kong generally does not impose tariffs on most imports and exports, goods purchased in the city and brought back to mainland China are subject to taxes if their value exceeds the duty-free allowance.
Hong Kong continues to face challenges in reclaiming its status as a premier shopping destination. Mainland visitors, historically the city’s largest tourism segment, are increasingly drawn to nearby competitors such as the tax-free island of Hainan and the casino hub of Macau. Meanwhile, Japan, benefiting from a weaker currency, has seen a rise in duty-free shopping from the region.
Additionally, neighboring Macau received a similar beneficial policy this year. Since the introduction of the new Hengqin Special Tariff Zone policy in March, visitors to Macau using the Hengqin border now enjoy an increased duty-free limit, rising from the original RMB5,000 ($688) to RMB8,000 ($1,100).
