March 4, 2018

The Liberal Democratic-Komei coalition and the Ishin no Kai, at the Lower House Financial Affairs Committee on March 2, used their majority to pass through a tourist tax bill imposing 1,000 yen per tourist when leaving Japan.

The Japanese Communist Party voted against this suddenly bill to impose a departure tax.

The LDP-Komei government explains that the new tax will earmark for measures to achieve the numerical target for inbound tourists. To promote tourism, it is necessary to secure revenue sources in general. However, the government does not make a convincing argument as to why general revenue needs to be secured by creating a new tax and why this could not be easily done by rearranging the current budget allocation.

Prior to the vote, JCP representative Miyamoto Toru arguing in opposition to the bill said that the government does not deny that the revenues from the new tax may be utilized for "integrated resorts" which include casinos. He warned that if enacted, the bill could allow the government to use the tourist tax revenues for whatever the ruling force desires.

Miyamoto added, "In the first place, the creation of a tourist tax has never been on any campaign agenda. No public discussion has taken place and no public consensus has been formed. Even the government Tax Commission did not discuss the introduction of a departure tax. This is totally an unexpected and surprising bill submission which is in line with the intent of the Prime Minister's Office." He again expressed his objection to the new tax bill as it overlooks the need for national discussion and consensus.