The Japanese government has announced that, starting November 2026, it will change the current 'on-site tax exemption' shopping model to a 'pay first, refund later' approach. Senior officials in the Liberal Democratic Party (LDP) are also in discussions to retain tax exemptions only for 'Japanese-made specialties.' The news has immediately attracted significant attention from various sectors. Travel expert Lin Shibi stated on his Facebook page 'Japanese Self-Guided Tour Addicts' that there is no need for excessive alarm and that people should just keep an eye on the news.

According to reports from Fuji News Network, LDP advisor Taro Aso noted that last year, 36.87 million foreign tourists visited Japan, spending a total of 8.1 trillion yen, with over 200 billion yen of that qualifying for tax exemption. He believes that eliminating this exemption could directly enhance government revenue, hence a careful assessment is needed.

However, Aso also mentioned that, besides complete cancellation, various alternatives are available, such as limiting exemptions solely to Japanese specialties. Moreover, former LDP Deputy Finance Minister Kenji Nakani also proposed the abolition of tax exemptions in the National Assembly last year, which received support from some opposition party members.

Lin further explained that the implementation of this policy is not expected to happen quickly, likely still aimed for 2026, with many variables likely to arise. He analyzed that the possibility of a complete abolition of tax exemption is low due to the significant impact it would have on tax-exempt stores primarily patronized by tourists. His prediction suggests that adjustments are more likely to limit tax exemption for luxury goods, while general travel items, such as souvenirs and Japanese specialties, may still maintain their tax-exempt status. He humorously added that for tourists who do not particularly purchase luxury goods, the impact should be minimal, emphasizing that at least they should still be able to buy Tokyo bananas tax-free!