Japan is considering overhauling its tax-free shopping program for foreign visitors in response to a growing number of cases of tax-free items being resold overseas for profit at tax-inclusive prices, sources close to the matter said Monday.
At present, visitors who stay in Japan for less than six months can purchase merchandise with the consumption tax already deducted. The government is now considering shifting to a program where they pay tax-inclusive prices and apply for refunds afterward, the sources said.
Formal government discussions on the tax-free shopping rule may start later this year when an annual tax system review for fiscal 2024 begins, the sources said.