According to an initial meeting held between the tax panel’s of both the Liberal Democratic Party and its coalition ally Komeito, discussions were held regarding the implementation of a new departure tax.
Under its proposal, a 1,000 yen individual tax would affect all those departing the country from April 2019, that is citizens and tourists alike. Applicable to both plane and ship departures, the proceeds would be used by the Government to promote tourism overseas, as they approach the 2020 Olympics.
The Japanese Federal Government has set itself a lofty target of 40 million tourists by 2020, as it continues to experience booming tourism throughout the country. In addition, the Tokyo Olympic journey has no doubt played an influential role in raising the appeal of Japan as a travel destination too.
The meeting held between the two parties forms part of its broader taxation reform package that it plans to complete by December 14 this year.
Obviously trying to ‘cash in’ on this recent rise in travelers from abroad, and with no signs of slowing down, the government no doubt sees this as a quick way to boost its income. However, as long as the revenue is actually being used in right way, that is improving infrastructure, providing multilingual signage and facilities, increasing accommodation supply, etc then I do not have a problem with it personally. Only time will tell.