China Promotes Medical
Tourism in Hainan by Tariff Cuts on Medical Supplies
The
initiative will be implemented in the Boao Hope Lecheng Medical Tourism pilot zone in eastern Hainan
·
Exemptions
would also apply to value-added tax (VAT) on imports before the island achieves
independent customs operations in 2025.
·
China’s
most-favoured-nation tax rate on imported medicines ranges from zero to 6 per cent,
while the general VAT rate on medicines is 16 per cent.
·
Beijing
has turned the 35,000 sq km (13,514-square mile) island
into the world’s largest free-trade port by offering tax incentives and relaxing
visa requirements for tourists and business travellers.
·
World’s
most renowned medical tourism destinations include Turkey, Mexico, Thailand and
South Korea, which offer a wide array of services, including cosmetic and orthopaedic
surgery and fertility treatments.
·
China
received 14.64 million foreign visitors in the first six months of the year, up
by 152.7 per cent year on year.
China
will eliminate tariffs on imported drugs and medical devices in a pilot zone on
its southern island province of Hainan, aiming to further stimulate domestic and
international medical tourism.
Exemptions
would also apply to value-added tax (VAT) on imports before the island achieves
independent customs operations in 2025, according to a statement issued on Thursday
by China’s Ministry of Finance and four other ministries.
The
initiative will be implemented in the Boao Hope Lecheng Medical Tourism pilot zone in eastern Hainan, which
the central government aims to transform into a world-class international medical
tourism destination by 2030.
Medical
institutions, colleges of medicine and pharmaceutical research institutes in the
zone will be able to purchase medicines or medical devices that have been approved
by China.
In
the pilot zone, drugs and medical devices that have not received central government
approval, but have been granted approval by the Hainan government – excluding vaccines
– will also be available for purchase tariff free.
However,
imported products can only be used within the region for their designated purposes
and cannot be transferred or taken out of the pilot zone by individuals or organisations,
according to the statement.
China’s
most-favoured-nation tax rate on imported medicines ranges from zero to 6 per cent,
while the general VAT rate on medicines is 16 per cent.
Beijing
has turned the 35,000 sq km (13,514-square mile) island
into the world’s largest free-trade port by offering tax incentives and relaxing
visa requirements for tourists and business travellers.
The
island is nurturing the medical tourism sector in Boao,
citizens from 59 countries, including the United States, Canada and Australia, can
travel to the island visa free
Medical
tourists from less-developed countries have traditionally sought treatment unavailable
in their home countries at major medical centres in highly developed countries.
But
it has increasingly involved travellers from developed countries seeking lower-cost
medical treatments
Some
of the world’s most renowned medical tourism destinations include Turkey, Mexico,
Thailand and South Korea, which offer a wide array of services, including cosmetic
and orthopaedic surgery and fertility treatments.
Boao has been planning to simplify entry and
residency procedures for overseas healthcare workers, patients and accompanying
persons in the pilot zone from as early as 2019.
The
town also aims to leverage the tourism resources of the surrounding villages and
towns to create integrated tourism development projects that combine medical treatment
with conservation.
After
reporting sluggish inbound travel, China has attempted to lure more visitors, including
visa-free policies to 12 countries and convenient payment methods and overseas promotions.
And
China received 14.64 million foreign visitors in the first six months of the year,
up by 152.7 per cent year on year.