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Japan to exclude foreign students, trainees from consumption tax exemption

  • December 5, 2021
  • , Yomiuri
  • JMH Summary

Sunday’s Yomiuri led with a report saying that the GOJ and the ruling coalition have decided to exclude foreign students and technical trainees based in Japan from the nation’s consumption tax exemption for foreigners and limit the application of the system to members of diplomatic missions and foreign travelers staying in the country for 90 days or less. Under the current system, students and other long-term foreign residents can purchase goods or receive services without paying consumption tax for the first six months after arriving in Japan. However, the GOJ is planning to make amendments to the system in its tax reform plans for fiscal 2022 with the aim of preventing people from profiting by reselling goods that they purchased tax free at prices including consumption tax. According to the paper, more than 80% of the 1,837 people involved in the tax-free purchases totaling over 1 million yen ($8,864) in Japan in the first half of this year were Chinese students. Among the 1,837, 69 spent more than 100 million yen ($886,407), and one of them bought about 32,000 items at over 1.2 billion yen ($10.6 million). Monday’s Nikkei ran a similar story.

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