Japan’s government is considering changing the way tourists will have their consumption tax waived. - PHOTO: AFP
TOKYO: Tourists who buy products in Japan may soon undergo a different process of getting waivers for their consumption tax.
Currently, the tourists’ consumption tax is deducted at the point of sale at designated duty-free stores and sales counters. However, some tourists abuse the system by reselling these products within Japan.
Japan’s government is considering changing the way tourists will have their consumption tax waived, reported Japan’s media outlet Nikkei Asia on Nov 25.
Under a new method, tourists will pay the consumption tax upon purchase, and get their tax refund only when they depart Japan and their purchases are confirmed.
This change may take effect in fiscal 2025 or later, said Nikkei Asia.
Foreign tourists are exempted from Japan’s consumption tax if they stay in Japan for less than six months.
Tax exemption is valid for the items taken out of Japan as personal souvenirs. This means that goods to be resold in Japan cannot qualify for duty-free sales.
Duty-free sales at Japanese department stores hit a record 38.3 billion yen (S$343.5 million) in October, the Japan Department Stores Association said on Nov 24, according to Nikkei Asia. This rise may be fuelled by tourists flocking to Japan, reported media outlet BNN.
This figure topped the 34.4 billion yen from April 2019. - The Straits Times/ANN
