Firms in Japan trying to cash in on overseas tourists

Many companies are planning to open duty-free shops in Japanese cities to attract big-spending tourists from other countries.

A firm in which the operator of Haneda Airport has the biggest stake plans to open a duty-free outlet in a department store in Tokyo’s Ginza district by Lunar New Year next month.

South Korea’s Lotte Group plans to open a similar shop in Ginza in March.

And a joint venture primarily set up by businesses based in Fukuoka in western Japan will begin a duty-free store in April.

While tax-free shops save customers from paying consumption tax, duty-free stores allow them to avoid duties and taxes on products such as tobacco and alcohol, as well as consumption tax.

Japanese lawmakers are discussing legislation to cut the tax-free minimum price for electrical appliances and clothing by about half to around 40 dollars.

 

Source and image: NHK