Foreign students in Japan will no longer be able to access duty-free purchases in response to suspected resale cases and complaints about cumbersome eligibility checks.
The Japanese government has decided to end the system that allows foreign students and other long-term residents to make tax-free purchases, Kyodo News reports.
The government and the ruling coalition led by the Liberal Democratic Party, Japan, plan to streamline the eligibility of duty-free purchases for tourists and those on short-term visas of up to 90 days as part of tax reform measures. .
According to Kyodo News, the decision comes in the wake of suspected resale cases and complaints about awkward eligibility checks, sources familiar with the plan said on Sunday.
“Under the current system, which will be reviewed as part of tax reforms before fiscal 2022, long-term foreign students who do not work part-time in Japan can make tax-free purchases within six months of entering the country,” Kyodo said. News.
There has been some criticism of the time-consuming security checks at duty-free shops to check whether the student is working. While others have complained that stores with smooth security checks will eventually attract more customers, Kyodo News reported.
According to Kyodo News, several doubts about “binge purchases” by foreign students arose after the introduction of a system to digitize buyer information in April 2021, discovered by the National Tax Agency. The agency believes that such foreign students could buy goods in large quantities and resell them at higher prices, with a consumption tax of 10 percent.
The tax-free purchases were previously open to “non-residents” under the country’s foreign exchange and foreign trade law, Kyodo news reported citing sources.
(Except for the headline, this story has not been edited by NewsMadura staff and has been published from a syndicated feed.)