{"id":100,"date":"2025-06-06T15:08:49","date_gmt":"2025-06-06T15:08:49","guid":{"rendered":"https:\/\/jobuzo.com\/en\/japan-mulls-crackdown-on-tax-free-shopping-stricter-residency-rules-for-foreigners\/"},"modified":"2025-06-06T15:08:49","modified_gmt":"2025-06-06T15:08:49","slug":"japan-mulls-crackdown-on-tax-free-shopping-stricter-residency-rules-for-foreigners","status":"publish","type":"post","link":"https:\/\/jobuzo.com\/en\/japan-mulls-crackdown-on-tax-free-shopping-stricter-residency-rules-for-foreigners\/","title":{"rendered":"Japan mulls crackdown on tax-free shopping &amp; stricter residency rules for foreigners"},"content":{"rendered":"<div>\n<h2>Japan contemplates tax hike &amp; tighter rules for foreigners<\/h2>\n<p>Amid concerns about overtourism and growing unease surrounding foreign residents, Japan is considering a range of policy changes, including tax increases and tighter regulations for foreigners.<\/p>\n<div id=\"attachment_614378\" class=\"wp-caption aligncenter\" readability=\"33\"><noscript><\/noscript>\n<p id=\"caption-attachment-614378\" class=\"wp-caption-text\">Source: Mlenny on Canva, for illustration purposes only<\/p>\n<\/div>\n<p>According to The Japan Times, the ruling Liberal Democratic Party (LDP) set up a panel on 21 May to address these concerns.<\/p>\n<h3>Addressing leniency for foreign residents<\/h3>\n<p>The government is examining several areas involving foreign residents, including the ease of converting foreign driving licences, a legal gap between naturalisation and permanent residency, and issues within the national health care system.<\/p>\n<p>Critics say that current regulations for converting foreign licences to Japanese ones are too lax, arguing that&nbsp;this has contributed to a rise in traffic accidents involving foreigners.<\/p>\n<p>In one example from October 2024, an intoxicated foreign teenager drove the wrong way on a one-way street and crashed into another vehicle at an intersection, resulting in a fatality.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"15nV9p3Flh\" readability=\"0\">\n<p>18-year-old boy kills 51-year-old man in car crash after drunk driving in Japan<\/p>\n<\/blockquote>\n<div class=\"internal-linking-related-contents\"><a href=\"https:\/\/jobuzo.com\/en\/12-weeks-jail-for-school-it-support-technician-who-took-upskirt-videos-of-teachers\/\" class=\"template-1\"><span class=\"cta\">News :<\/span><span class=\"postTitle\">&lt;div&gt;12 weeks' jail for school IT support technician who took upskirt videos of teachers&lt;\/div&gt;<\/span><\/a><\/div><p>At present, foreign licence holders only need to pass a written test consisting of 10 questions to convert their licence.<\/p>\n<p>Observers have called the test insufficient in evaluating a driver&rsquo;s understanding of local traffic laws.<\/p>\n<p>Authorities have also highlighted a loophole where applicants use hotels or other temporary lodgings as their registered address.<\/p>\n<h3>Pathway to Japanese citizenship under scrutiny<\/h3>\n<p>Meanwhile, under Japanese law, foreigners staying more than three months must enrol in the national health insurance scheme.<\/p>\n<p>However, from April to December 2024, only 63% of foreign residents paid their premiums &mdash; well below the 93% compliance rate among citizens.<\/p>\n<p>Another area under scrutiny is the process of becoming a Japanese citizen.<\/p>\n<div class=\"internal-linking-related-contents\"><a href=\"https:\/\/jobuzo.com\/en\/migrant-acquitted-in-first-trial-over-us-border-military-zones\/\" class=\"template-1\"><span class=\"cta\">News :<\/span><span class=\"postTitle\">Migrant acquitted in first trial over US border military zones<\/span><\/a><\/div><p>Currently, naturalisation requires five years of residency and only one year&rsquo;s worth of tax and insurance records.<\/p>\n<p>In contrast, applying for permanent residency involves 10 years of residency, five years of tax history, and two years of insurance payments.<\/p>\n<p>Lawmakers have questioned why the pathway to citizenship, which grants voting rights and one of the world&rsquo;s most powerful passports, is less stringent than that for permanent residency.<\/p>\n<div id=\"attachment_614362\" class=\"wp-caption aligncenter\" readability=\"33\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-614362\" class=\"wp-image-614362 size-full lazyload\" alt=\"japan tax foreigners\" width=\"1500\" height=\"993\" data-srcset=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131.png 1500w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131-600x397.png 600w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131-1024x678.png 1024w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131-150x99.png 150w\" data-sizes=\"(max-width: 1500px) 100vw, 1500px\" src=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131.png\"><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-614362\" class=\"wp-image-614362 size-full\" src=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131.png\" alt=\"japan tax foreigners\" width=\"1500\" height=\"993\" srcset=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131.png 1500w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131-600x397.png 600w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131-1024x678.png 1024w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-passport-e1749203685131-150x99.png 150w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\"><\/noscript>\n<p id=\"caption-attachment-614362\" class=\"wp-caption-text\">Source: Torsakarin on Canva, for illustration purposes only<\/p>\n<\/div>\n<h3>Proposed policies target tourists, too<\/h3>\n<p>The panel is also weighing measures that primarily affect tourists, including a possible overhaul &mdash; or even full abolition &mdash; of Japan&rsquo;s longstanding tax-free shopping system.<\/p>\n<div id=\"attachment_614384\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-614384\" class=\"size-full wp-image-614384 lazyload\" alt width=\"2057\" height=\"1188\" data-srcset=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1.jpg 2057w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-600x347.jpg 600w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-1024x591.jpg 1024w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-150x87.jpg 150w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-1536x887.jpg 1536w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-2048x1183.jpg 2048w\" data-sizes=\"auto, (max-width: 2057px) 100vw, 2057px\" src=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1.jpg\"><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-614384\" class=\"size-full wp-image-614384\" src=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1.jpg\" alt width=\"2057\" height=\"1188\" srcset=\"https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1.jpg 2057w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-600x347.jpg 600w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-1024x591.jpg 1024w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-150x87.jpg 150w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-1536x887.jpg 1536w, https:\/\/mustsharenews.com\/wp-content\/uploads\/2025\/06\/japan-tax-free-1-2048x1183.jpg 2048w\" sizes=\"auto, (max-width: 2057px) 100vw, 2057px\"><\/noscript>\n<p id=\"caption-attachment-614384\" class=\"wp-caption-text\">Source: Nikkei<\/p>\n<\/div>\n<p>Originally introduced to encourage foreign spending, the scheme allows tourists to buy goods without paying the standard 10% consumption tax, provided the items are taken out of the country.<\/p>\n<p>However, there is growing evidence of abuse.<\/p>\n<p>In 2022, at least nine travellers who made tax-free purchases were found to have left Japan without the goods in question, resulting in 340 million yen (approximately S$3 million) in unpaid taxes.<\/p>\n<p>While the precise extent of the issue is unclear, officials suspect that Japan&rsquo;s recent tourism boom has made the problem more widespread.<\/p>\n<p>Retailers have raised concerns that changes to the system could hurt sales and burden airport staff with additional customs checks.<\/p>\n<p>In a related move, the government is also considering raising the 1,000 yen (S$9) departure tax, which currently applies equally to Japanese and foreign nationals.<\/p>\n<p>The proposed revision would see the increase apply only to foreign travellers.<\/p>\n<p>While proponents argue this would help fund tourism infrastructure and manage overtourism, critics warn that targeting only foreign tourists may violate international agreements.<\/p>\n<p><strong>Also read: Japan considers raising tourism tax from S$9 to S$45 in bid to address overtourism<\/strong><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"FHtaNzsWPO\" readability=\"0\">\n<p>Japan considers raising tourism tax from S$9 to S$45 in bid to address overtourism<\/p>\n<\/blockquote>\n<p><em>Have news you must share? Get in touch with us via email at&nbsp;news@mustsharenews.com.<\/em><\/p>\n<p><em>Featured image adapted from CHUNYIP WONG on Canva, for illustration purposes only.<\/em><\/p>\n<p><!-- CONTENT END 1 --><\/p><\/div>\n<p><sub><\/sub><\/p>\n<div>Japan mulls crackdown on tax-free shopping &amp; stricter residency rules for foreigners<\/div>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan contemplates tax hike &amp; tighter rules for foreigners Amid concerns about overtourism and growing unease surrounding foreign residents, Japan is considering a range of policy changes, including tax increases and tighter regulations for foreigners. Source: Mlenny on Canva, for illustration purposes only According to The Japan Times, the ruling Liberal Democratic Party (LDP) set&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/jobuzo.com\/en\/japan-mulls-crackdown-on-tax-free-shopping-stricter-residency-rules-for-foreigners\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;Japan mulls crackdown on tax-free shopping &amp; stricter residency rules for foreigners&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/comments?post=100"}],"version-history":[{"count":0,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/100\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media\/101"}],"wp:attachment":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media?parent=100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/categories?post=100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/tags?post=100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}