LDP lawmakers to propose abolishing tax-free shopping for overseas visitors
A group of lawmakers from Japan's ruling Liberal Democratic Party says it has come up with a proposal that includes abolishing, in principle, the tax-free shopping system for foreign visitors.
Under the current system, eligible foreign tourists can purchase items at duty-free shops in Japan without paying consumption tax.
But it is pointed out that there have been many cases where visitors are buying a large amount of duty-free items and reselling them to gain illegal profits.
An LDP study group initiated by Supreme advisor Aso Taro basically approved the draft plan on Thursday calling for the abolition of the tax exemption system.
The draft is raising doubts about whether the government can gain the public's understanding for supporting sales of luxury brand items to foreign tourists through the tax system.
But the group also notes that regional development needs to be supported. It calls for preferential measures for duty-free shops at regional airports and ports that sell specialty products such as sake to overseas visitors who have completed their departure procedures.
The group says it will submit its proposal to the LDP's Research Commission on the Tax System for discussions on tax reform in fiscal 2026.
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