Japan to make more goods consumption tax-free for foreign tourists

posted on November 27, 2015

The Japanese government and the ruling coalition decided Thursday to lower the consumption tax-free threshold to 5,000 yen for visitors to Japan.

Currently, foreign tourists do not have to pay the tax when they buy nonexpendable goods, such as home appliances, worth more than 10,000 yen per store. Per-store purchases of consumables, such as foods, beverages and cosmetics, totaling more than 5,000 yen are consumption tax-free.

Lowering the tax-free thresholds is expected to encourage foreign tourists to spend more in regional cities, where purchase prices are generally lower than those in big cities, government officials said.

The uniform threshold of 5,000 yen will make it easier for the visitors to know if their purchases are consumption tax-free, the officials pointed out.

source by jiji
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