The shopping mecca of Shanghai saw a sharp increase in overseas tourist spending during the May Day holiday on May 1-5 — with departure tax refund sales rising by 1.5 times and the total refunded amount increasing by a whopping 1.7 times compared with the same period last year.

That's in the wake of the move by China's State Taxation Administration, which in April introduced a revised policy to make tax refunds more accessible to international tourists.

Key improvements included lowering the minimum purchase amount for a refund from 500 yuan ($69.23) to 200 yuan, easing registration requirements for retailers and raising the cash refund limit. These changes have encouraged many local, time-honored brands to join the program.

Well-known traditional food shops such as Taikang Foods and Shao Wan Sheng have already completed their registration, while other long-established brands like Xinghualou, Huang Long Tai and Shanghai First Foodmall are preparing to join.

Nanjing Road Pedestrian Street — one of Shanghai's top tourist destinations — is quickly becoming a major hub for departure tax refund shopping.

Since mid-April, the local tax authority has actively encouraged many long-standing and chain store retailers to participate in the fun.

Currently, 45 shops on the street offer tax refunds — including heritage brands like Cai Tong De Pharmacy, Maochang Optical, Lao Feng Xiang Jewelry and Duoyunxuan, as well as long-established department stores such as Wing On Department Store and Shanghai No 1 Department Store.

The shops offer a wide range of great products, from food and clothing to home goods and art.

One standout example is Manloulan, known as the "Hermes of the qipao industry". The qipao is traditional Chinese apparel and its boutique on Changle Road has seen a 35 percent year-on-year increase in sales, with foreign customers accounting for about 40 percent of its shoppers in the first quarter.

Since becoming a tax refund store, its appeal among international tourists has grown even further.

Zhang Xiaochun, financial manager of Manloulan, said the improved tax refund process enables foreign shoppers to scan a QR code in-store to pre-fill their information. Digital invoices are automatically uploaded to the tax system, significantly reducing the time needed to apply for a refund.

Sources: Official WeChat account of the publicity department of the CPC Huangpu district committee at "shhuangpu", Shanghai Observer