Japan plans to promote tourism with the revenue from new departure tax

Published on : Monday, December 4, 2017

JapanAccording to a new plan drafted by the government and ruling coalition, Japan is planning to impose a ¥1,000 departure tax on everyone who is travelling abroad starting from April 2019. The individual tax would be levied on those departing by plane or ship, with the revenue used to promote tourism.

 

 

Under the new rule, the authority might also levy a forest tax for the reform package to aid forestry development.

 

 

In a joint meeting between the tax panels of the ruling Liberal Democratic Party and Komeito, its coalition ally discussed about the establishment of the departure tax. Although there were no objections, some said that there is a need to limit how the new revenue would be used and to discuss low-fare airline and ship services. More discussions will follow.

 

 

Last year, about 40 million departures were logged by citizens and tourists, meaning a departure tax could generate an extra ¥40 billion each year. Japan aims to increase the visitor numbers to 40 million by 2020. Based on this, the government intends to use the funds to increase tourism promotion overseas and develop a friendlier environment for tourists, such as by preparing multilingual signs and improving immigration control procedures.

 

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