The government will relax the rule for duty-free shopping from Sunday in its latest effort to spur spending by foreign visitors, after “explosive buying” b
The government will relax the rule for duty-free shopping from Sunday in its latest effort to spur spending by foreign visitors, after “explosive buying” by Chinese tourists appears to have cooled down.
Under the current rule, foreign visitors have to buy at least ¥5,000 ($45) worth of consumables, such as food and cosmetics, or the same value of general items, such as clothing, to be exempted from paying the nation’s 8 percent consumption tax. But some visitors have complained they are not sure if they are buying “consumable” or “general” items.
Beginning in July, foreign visitors’ purchases will be eligible for the tax-free program if the total purchased amount of the two categories reaches ¥5,000.
Many shop operators have said simplifying the rule may encourage foreigners to spend more.
Spending by foreign tourists in Japan hit a record ¥4.42 trillion in 2017 on the back of a rising number of travelers, but there still seems to be a long way to go to achieve the government’s goal of raising the amount to ¥8 trillion in 2020.
