Japan to overhaul tax exemption system for foreign visitors

The 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.
Under the current system, duty-free shops sell products to foreign visitors at tax-excluded prices after checking their passports.
The new system is expected to allow foreign visitors to receive tax refunds for products purchased at prices with the tax included when they leave the country.
The government and ruling coalition plan 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 on the purchase of duty-free consumable items such as food and cosmetics, with a goal of making the system more convent for foreign visitors and expanding domestic consumption.