RVs Are Booming In China

Above, an RV show in China. China daily photo.

Who'd have thought it? But there is another RV boom going on.

The place: China!

Yes, RVs are booming in China according to an article in the Asia News Network (ANN). Motorhomes are outselling towable RVs.

They wrote:

Last May Day holiday, Ji Ping drove a Class B motorhome, a popular type of recreational vehicle, to the Haba Lake eco-tourism area in Wuzhong, Ningxia Hui autonomous region, in Northwest China. The spot, with overall utilities, campsites and an ideal field for stargazing, attracts many RV enthusiasts.

“After retirement, I bought a motorhome worth about 300,000 yuan ($47,100) to travel with my wife and grandson. We had been to scores of cities in China and went to Laos and Vietnam. Traveling by RV has become a new lifestyle, especially for us seniors, since we have more time,” Ji said.

Another vacationer Li Jian recently drove his motorhome to the RV campsite in Baishamen Park, Haikou, Hainan province. “I paid 60 yuan for parking every day, and it also covered water and electricity, so the price is totally affordable. And my stay there was very convenient and relaxing because the campsite is surrounded by markets and a beautiful beach.”

Such scenes have become increasingly common across China as the RV market booms amid a growing motorhome culture and expanding integration of campsites and scenic spots.

 To read more, go here.

Japan's Consumption Tax and Foreign Visitors

Above, the duty-free shops at Narita International Airport are some places to avoid the tax. Photo by Armand Vaquer.

Today is the first day that Japan's consumption tax was hiked from 5% to 8%. If you are a foreign visitor to Japan, how does this tax affect you?

According to the Japan National Tourism Organization (JNTO):

Tax-Free Shopping 

Overseas visitors in Japan with temporary status who spend more than 10,001yen on any given day in one shop are entitled to a refund of the 5% consumption tax. Only department stores and specialty shops used to dealing with foreign tourists offer the refund, and clients must show their passports. No refund is granted for cosmetics, food, alcohol, cigarettes, medicine, film and batteries, which include the consumption tax in their price tag. 

The above was written before the tax hike. Changes are currently being considered for some of the items currently taxed.

Asia News Network reports:

Foreign tourists are currently exempt from consumption tax on purchases of goods worth more than 10,000 yen (US$99), before tax, per individual tax-free shop. Eligible items include household appliances, cameras and clothes. 

To be exempted from the tax, tourists receive a form at the shop that they must then present to customs when leaving the country. 

Tax-free shops can be found in Narita Airport and other international airports, and also in areas popular among foreigners, including Tokyo’s Akihabara district and Kyoto. There are about 4,600 tax-free shops outside airports, most of them in major urban areas. 

Part of the government’s plan involves expanding the list of items available tax-free. Goods that tourists might use during their stay, such as drinks, food, cosmetics and medicines, are currently not tax-exempt, except at airport duty-free shops. However, the government is planning to make such items exempt as well.

At present, no changes have been made to exempt items such as drinks, food, cosmetics.

According to The Japan Times, there are some surprises in store for consumers:

Tuesday’s consumption tax hike will in principle affect all domestic purchases of goods or services, but there are still gray areas where consumers may get surprised by unexpected levies, government officials warn. 

The consumption tax reform law, part of integrated social security and tax changes aimed at doubling the sales levy to 10 percent in 2015, will raise the tax to 8 percent from 5 percent on April 1, and “there are no changes in nontaxable areas,” a National Tax Agency spokesman said. 

The tax is levied on all goods and services purchased or consumed within Japan, as well as all assets leased, including DVDs and office space. That means any consumption deemed to take place outside the country is basically not subject to the levy.

The Japan Times article does include a breakdown on goods and services subject to the consumption tax.