▲ Kansai International Airport in Osaka, Japan (File Photo)
The consumption tax exemption procedure for foreign tourists visiting Japan will be entirely overhauled starting in November, shifting from the existing "immediate in-store discount" to a "departure refund" system.
According to the Nihon Keizai Shimbun, the Japanese government is introducing this "refund-style" duty-free system to eradicate illegal reselling, where individuals purchase duty-free goods at a low price and then illegally resell them within Japan.
Under the new system, when implemented, tourists will first pay for goods including tax at around 64,000 duty-free stores across Japan, and then receive a refund equivalent to the consumption tax amount after confirming the export of the goods at airport or seaport customs upon departure.
This marks a fundamental overhaul about 70 years after the introduction of the point-of-purchase tax-free system in 1952.
Refunds will be provided in cash upon departure or through methods such as canceling charges on a pre-designated credit card.
This reform is expected to effectively block the illegal distribution of duty-free goods while also simplifying product packaging procedures.
The per-person daily purchase limit of 500,000 yen (approx. 4.2 million KRW) previously applied to consumables such as pharmaceuticals and cosmetics will be abolished, and the obligation to use special transparent packaging bags will also disappear.
However, voices of concern are also emerging from tourism sites and the retail industry regarding a temporary contraction in consumption following the system change.
There are projections that sales of high-end items at department stores and luxury watch shops frequently visited by foreign tourists could drop by about 10% to 20% in the short term due to refund fees and the complexity of departure procedures.
Marketing firm Novarca estimated that the departure of illegal resellers alone would reduce department store duty-free sales by about 10% চৈতন্যের
In addition, industry insiders point out that the connected consumption, where the consumption tax saved through on-site discounts was spent at department store basement food halls, is also likely to decrease.
As the Japanese government has set a goal to increase the number of inbound tourists from 42.68 million (with consumption of 9.5 trillion yen) in 2025 to 60 million (with consumption of 15 trillion yen) by 2030, it plans to operate the new system carefully so that it does not become a stumbling block to tourist consumption trends.
(Photo: Getty Images)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.