With the weak yen, shopping in Japan has become a great bargain for inbound tourists. Last year, Japan even considered revising its tax-free shopping rules to help curb abuse. But now, the country is looking to take a different approach by contemplating removing the tax-free limit on certain goods to help boost spending by travellers.
As reported by The Mainichi, the Japan Tourism Agency is looking into removing the ¥500,000 tax-free limit on purchases of consumable goods. This covers alcohol, cosmetics, food and medicine. According to the agency, the current ¥500,000 limit on consumable goods is too low when considering the popularity and demand for high-end products like rare alcohol and luxury cosmetics. Plus, no limit exists for other items such as clothing and electronics.
In addition to scrapping the tax-free limit, the fiscal 2025 tax reform request also includes removing the need for tax-free items to be packaged in sealed bags. Currently, consumable goods are sealed up in plastic bags at the point of purchase to prevent people from opening and consuming or even reselling the items before leaving the country.
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