Japan relaxes tax-free shopping rules for tourists
The Japanese government is easing rules for duty-free shopping in a bid to spark more spending from foreign visitors.
It is simplifying rules which have often been called confusing for foreign visitors and cumbersome for store owners.
Under previous rules visitors had to spend at least 5,000 yen ($45) on consumable items, like food or cosmetics, or on general items, such as clothing at the same minimum value, to be exempt from paying the 8% consumption tax.
However visitors are often unsure which of the two categories their purchases came under.
Now travellers will be enjoy tax-free shopping as long as the combined amount purchased is 5,000 yen or more.
Many retail outlets believe simplifying the policy will boost spending.
The government decided to amend the policy as the high spending China market is now shying away from shopping focused trips in favour of more experiential holidays.
Still, spending by foreign tourists in Japan reached a record 4.42 trillion yen last year.
Japan has set an aggressive target of eight trillion yen in 2020.
It also wants to increase the number of duty-free shops, particularly outside Japan’s big cities.
There are currently about 45,000 tax-free stores nationwide.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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