(Yicai) June 28 -- China will raise the duty-free quota for people entering the mainland through the Hong Kong and Macao Special Administrative Regions, so as to boost consumption and tourism in those two regions. 

People aged above 18 will be able to enter with goods bought overseas worth up to CNY12,000 (USD1,650) without and duties being levied, according to a document issued today by the finance ministry and the tax and customs administrations. The previous limit was CNY5,000 (USD688).

For people buying goods in duty-free shops at the border, the ceiling will be CNY15,000, up from CNY8,000.

The new policy will start July 1 at six checkpoints and ports: Luohu, Futian, Shenzhen Bay, Gongbei Port, Hong Kong-Zhuhai-Macau Bridge Zhuhai Port, and the West Kowloon Railway Station on the Guangzhou-Shenzhen-Hong Kong High-speed Railway. It will then be implemented at all border checkpoints from Aug. 1. 

Hong Kong Chief Executive John Lee said the move reflects support from China’s central government for the SAR’s economic development, adding that it will improve the shopping experience in Hong Kong for tourists from the mainland, encouraging more of them to visit and thereby boosting tourism. It will also help to develop local retail sales channels in Hong Kong and inject more vitality into the local economy. 

The Hong Kong government predicted that the new policy will generate extra retail spending of between HKD8.8 billion (USD1.2 billion) and HKD17.6 billion (USD2.3 billion) each year, with a corresponding rise in economic value-added of between HKD2.7 billion (USD352.9 million) and HKD5.4 billion (USD691.5 million). 

The plan will spur tourism-related consumption, benefit small and mid-sized companies in Macao and inject momentum into economic growth, said Ho Iat Seng, chief executive of the Macao SAR. 

Editor: Tom Litting