- 14 Mar 2002
- 21,050
- 18,903
A significant loophole in Japan's duty-free system has been revealed recently: nine individuals were found to have exploited the system by purchasing over 100 million JPY worth of duty-free goods and reselling them domestically for profit rather than exporting them as required.
In fiscal 2022, these individuals collectively purchased 3.4 billion JPY of goods, evading approximately 340 million JPY in consumption taxes. Duty-free goods are intended for export and cannot be resold within Japan. Customs officials collect the 10% consumption tax from individuals who fail to export these goods. Previously, customs officials could only levy these taxes through written notices, a time-consuming process. To address this issue, the law was amended in April 2022 to allow for verbal notices, particularly for individuals attempting to evade taxes by arriving at the airport just before boarding their flights.
Many countries have implemented a refund system to combat the illegal resale of duty-free goods. This system allows foreign visitors to claim a refund on the consumption tax paid on their purchases by presenting them at customs upon departure. Japan is now exploring the possibility of adopting a similar system.
mainichi.jp
In fiscal 2022, these individuals collectively purchased 3.4 billion JPY of goods, evading approximately 340 million JPY in consumption taxes. Duty-free goods are intended for export and cannot be resold within Japan. Customs officials collect the 10% consumption tax from individuals who fail to export these goods. Previously, customs officials could only levy these taxes through written notices, a time-consuming process. To address this issue, the law was amended in April 2022 to allow for verbal notices, particularly for individuals attempting to evade taxes by arriving at the airport just before boarding their flights.
Many countries have implemented a refund system to combat the illegal resale of duty-free goods. This system allows foreign visitors to claim a refund on the consumption tax paid on their purchases by presenting them at customs upon departure. Japan is now exploring the possibility of adopting a similar system.
'Stolen tax': As inbound tourism surges, abuse of Japan's duty-free system emerges (Pt. 1) - The Mainichi
The number of foreign visitors to Japan surged to a single-month high of 3.29 million in July, and the country is seeing a boom in visitor spending. Y
