Taiwan to introduce tax-free shopping for tourists

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The Taiwanese cabinet is considering new legislation that will exempt foreign visitors from paying the five percent business tax on purchases made within the country

The proposed exemption is one of many suggestions designed to encourage spend among the decreasing number of tourists travelling to Taiwan, after visitor numbers dropped by 3.6% for January to November 2002 compared with the same period in 2001.

Officials said that shopping constituted a major attraction to Taiwan, and such incentives would provide a significant boost to tourism. However, one local operator from Taipei Chiang Kai Shek airport raised doubts.

"It could be a good idea for retailers, but that depends on how they execute it - it could cause a nightmare in administration," the retailer told TRW. "And how would tourists register, particularly when many locals have two passports?"