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Hassle-free GST refunds with automated system
By Koh Boon Pin, Consumer Correspondent Global Refund Singapore is making it easier for tourists here to get GST refunds on their purchases by automating the process at the retailer level. By doing so, it hopes to increase tourist spending by about 10 per cent. Global Refund managing director Asad Jumabhoy told The Straits Times on Tuesday: "The turnaround time for processing claims is now faster. What I'm hoping is that tourists will now have an incentive to get their tax refunds. And when they see that it's so easy, they may then shop more." Under the new automated system, tourists can get their tax claims printed out in a fraction of the time it used to take. Previously, tourists had to wait for retailers to fill out their tax-refund forms and calculate manually the amount of refund they get. While this was not a problem in a boutique where customer traffic is lighter, tourists ended up spending more time waiting in department stores, he said. Three retailers -- department store Takashimaya and computer shops Com-Mart and Microhouse OA, have had the system installed. Global Refund is now looking to another 40 retailers to do likewise over the next 12 months. Apart from reducing administration time, which can be used to serve customers instead, the system allows retailers to capture more timely data on their customers' spending habits. Said Mr. Jumabhoy: "Retailers used to have to wait for monthly reports supplied by us based on the refunds we processed. Now, they can capture some of this data themselves and use it to do more rigorous target marketing." With the Asian crisis blowing over and tourist arrivals set to hit a record 7.6 million visitors this year, Global Refund's new service would give retailers here an edge. Singapore Tourism Board figures place estimated shopping spending by visitors last year at $2.66 billion, up from $2.33 billion in 1998. According to Global Refund, the amount given out in tax refunds has gone up by more than 10 per cent in the first 10 months of this year, compared to the same period last year. Based on its data, watches and jewelry are popular with both the Asian and Western shopper. However, spending on fashion is more
popular with Asian tourists; Western shoppers prefer spending their money
on audio, video and computer items. |
