Latest news with #YoichiMiyazawa
Yomiuri Shimbun
a day ago
- Business
- Yomiuri Shimbun
Govt, LDP Discuss Increasing Taxation on Foreign Visitors; Abolition of Tourist's Consumption Tax Exemption Urged
Yomiuri Shimbun file photo The Liberal Democratic Party's headquarters in Chiyoda Ward, Tokyo. There are growing discussions within the ruling Liberal Democratic Party about how to tax the rapidly increasing number of foreign visitors to Japan more effectively. The LDP argues that abolishing the consumption tax exemption and raising the International Tourist Tax (departure tax) would also help to combat overtourism. A group of LDP lawmakers on Thursday handed proposals to Itsunori Onodera, chairperson of the LDP's Policy Research Council, and Yoichi Miyazawa, chairperson of the party's Research Commission on the Tax System, calling for the abolition of the consumption tax exemption. Introduced alongside Japan's consumption tax in 1989, the exemption is based on the international principle that consumption tax is levied at the point of consumption. However, there have recently been an increasing number of cases of abuse of the system, with large quantities of tax-exempt goods being purchased and resold for profit. In response, the government plans to revise the current system of selling goods without consumption tax being imposed at duty-free shops and instead implement a 'refund system' from November next year, whereby consumers will receive the amount paid in consumption tax at the time of departure. If abuse occurs, the refund will not be paid. Nevertheless, the lawmakers argue that abuse cannot be prevented if duty-free shops and international visitors collude, and therefore the tax exemption should be abolished. 'Offering a 10% discount (by not imposing the consumption tax) to encourage people to buy overseas brand-name goods (in Japan) is not the vision of a tourism-oriented country that we are aiming for,' said Kenji Nakanishi, a member of the House of Representatives. The government and the LDP are also considering increasing the departure tax. Introduced in 2019 as a source of revenue for tourism promotion, the tax imposes a ¥1,000 levy on passengers departing from Japan, regardless of nationality. The tax is added to airline and cruise ship ticket prices. At the House of Councillors Budget Committee in May, Prime Minister Shigeru Ishiba stated that visitors to Japan also use Japan's infrastructure and that 'paying appropriate compensation is an obligation that they owe Japanese taxpayers,' indicating his intention to consider raising the tax. There are countries and regions with higher departure taxes than Japan — Australia imposes a 70 Australian dollar (approximately ¥6,600) levy, while Hong Kong charges 120 Hong Kong dollars (approximately ¥2,200). According to the Japan National Tourism Organization, the number of foreign visitors to Japan in 2024 increased by 47.1% year-on-year to reach 36.87 million. Visitors are arriving at a record-breaking pace this year, making measures to address overtourism an urgent issue.
29-05-2025
- Business
LDP Group to Seek End to Tax Exemption for Foreign Visitors
News from Japan Guide to Japan Politics Travel May 29, 2025 22:16 (JST) Tokyo, May 29 (Jiji Press)--A group of lawmakers from Japan's ruling Liberal Democratic Party on Thursday broadly approved a proposal to review the consumption tax exemption for foreign visitors to the country, including the option of abolishing it. The group, led by LDP supreme adviser Taro Aso, plans to submit the proposal to LDP tax panel chief Yoichi Miyazawa soon. The proposal states that bulk purchases of home appliances and pharmaceuticals by foreign visitors do not align with "the image of a tourism-oriented country that we aim to be." "These purchases are done almost exclusively in metropolitan areas, and it can't be said that they help revitalize regional economies or boost employment opportunities," it continues. END [Copyright The Jiji Press, Ltd.] Jiji Press
24-05-2025
- Business
Japan LDP Holds Meeting for Tax Cut Backers to Let Off Steam
News from Japan Politics May 24, 2025 20:13 (JST) Tokyo, May 24 (Jiji Press)--Japan's Liberal Democratic Party recently held a study session apparently to let proponents of a consumption tax cut blow off steam following the party's decision to forgo including the measure in its election platform. While some participants voiced calls for a tax cut, Friday's meeting of the LDP's Research Commission on the Tax System ended without a hitch in just an hour and 20 minutes, 10 minutes shorter than expected. The LDP leadership has decided not to include a consumption tax reduction in its campaign pledges for the upcoming election for the House of Councillors, the upper chamber of the Diet, the country's parliament. Roughly 50 lawmakers including LDP Secretary-General Hiroshi Moriyama and commission Chairman Yoichi Miyazawa attended the study session. "Lowering the tax rate would be (an administrative) burden on many businesses," Shigeyuki Goto, who heads a commission subgroup, said at the start of the meeting. "I hope we will deepen mutual understanding and perceptions and have a solid discussion as a responsible ruling party." [Copyright The Jiji Press, Ltd.] Jiji Press
