Japan Plans to Introduce a ¥1,000 Departure Tax to Boost Tourism Promotions

Japan plans to charge a ¥1,000 departure tax to them who plans to exit from the country- to both Japanese and foreign nationals.

The per person fee would be levied on those departing by plane or ship, with the revenue going toward promoting tourism. The plan will be part of the ruling bloc's fiscal 2018 tax reform package, which is set to be compiled on December 14, 2017.

The taxation policy would mark Japan's first new tax since a land value levy was established was 1992.

A forest tax is also part of the current reform package, with the collected funds earmarked for forestry development in the territory which can afford the responsible and sustainable tourism.

The tax panels of the ruling Liberal Democratic Party and its coalition ally, Komeito, held their first joint meeting Friday and discussed the establishment of the departure tax.

There are no objections were raised to the idea, but some of the participants pointed to a need to limit the use of revenues from the tax and to take into account low-fare airline and ship services.

The panel will continue discussions on such details. In the year 2016, there are about 40 million Japanese citizens and visitors to Japan departed the country.

With the introduction of departure tax in Japan, the country could generate ¥40 billion each year.

With an aim to increase the number of visitors to Japan to 40 million by 2020, the government of Japan intends to employ the funds to increase tourism promotion in the nation and overseas.

These tourism promotions will help to develop a friendlier environment for tourists visiting Japan, such as preparing signs in multiple languages and making immigration control procedures smoother.