Travel costs to Japan are rising again as consumption tax increases

By MOOK Attractions Family / Wu Pin-xuan, compiled and reported

Traveling to Japan will soon become more expensive. Japanese Prime Minister Shinzo Abe recently announced that the consumption tax rate will be raised from 8% to 10%, with the new rate expected to take effect in October 2019. In the future, economic recovery and fiscal health will also be key goals. The tax was originally scheduled to increase to 10% as early as 2015, but Abe postponed the hike twice due to global economic slowdown and other reasons.

For travelers, this means increased expenses on future trips. While most overseas visitors to Japan can claim refunds on purchases such as cosmetics and department store goods when spending above a certain amount, food, accommodation, and other services are not eligible for tax exemption. As a result, travel expenses will inevitably rise. Furthermore, according to the Japanese government’s plans, the long-term goal is to eventually raise the consumption tax to 15%.

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