The reform reported on Wednesday, set to be included in Prime Minister Shigeru Ishiba's December tax policy package, aims to combat the illegal resale of duty-free goods by tourists who reportedly sell tax-exempt purchases for profit before leaving Japan.
Under existing rules, foreign tourists can avoid the 10 percent consumption tax on purchases exceeding 5,000 yen at the point of sale.
The new system will require full tax payment upfront, with refunds processed at airports and seaports through specialized verification equipment.
The revision will also eliminate tax exemptions for items shipped internationally from Japanese post offices, as authorities tighten controls over duty-free merchandise leaving the country.
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