Japan to Overhaul Tax Exemption System for Foreign Visitors

Tokyo, Nov. 28 (Jiji Press)--The Japanese government and ruling parties have decided to overhaul the country’s consumption tax exemption system for foreign visitors to prevent them from reselling duty-free goods in Japan, it was learned Thursday.

Under the current system, duty-free shops sell products to foreign visitors at tax-excluded prices after checking their passports.

A new system is expected to allow foreign visitors to receive tax refunds for products purchased at tax-included prices when they leave the country.

The government and ruling coalition plans to include the new system in a tax system reform package for fiscal 2025, hoping to introduce it in fiscal 2026.

They are also considering abolishing the upper limit of 500,000 yen on the purchase of duty-free consumable items such as food and cosmetics, hoping to improve convenience for foreign visitors and expand domestic consumption.

[Copyright The Jiji Press, Ltd.]