Overseas visitors will be able to claim tax refunds on departure from China in the southwest city of Chengdu.
The new policy will take effect from New Year's Day.
Visitors can also get their tax refunded in 33 shopping malls in the city.
Spending over 500 yuan in one day at one place will qualify visitors for a an 11 percent refund, with a 2 percent commission fee.
Official data shows that over 2.2 million overseas visitors traveled to Chengdu last year.
Nearly 20 percent of their spending went on shopping.