A group of lawmakers has proposed scrapping Japan’s decades-long tax-free shopping system designed to lure foreign tourists to the country, arguing the benefit has been plagued by fraud and has deprived the government of a significant source of revenue.
Japan welcomed a record 36.8 million visitors last year due to a weak yen and aims to draw 60 million travellers annually by 2030.
But ruling party legislator Kenji Nakanishi said it was time for the popular tourist destination to move beyond its low-price allure that boosts profits for local businesses.
“I want foreign tourists to understand the true value of Japan, I don’t want them to come just because it’s cheap,” Nakanishi said.
He and fellow lawmaker Kazunori Tanaka are part of a panel that will submit its suggestions to the Liberal Democratic Party’s tax committee, which plays a major role in framing the national budget, The Japan Times reported.
“Widespread fraudulent use of the tax-free system undermines the credibility and fairness of the consumption tax. We can’t allow this to continue,” the newspaper quoted Tanaka as saying at a meeting last Thursday.
