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As Japan sees record-breaking numbers of international tourists, the government is reconsidering its long-standing tax-free shopping system. Lawmakers argue that widespread abuse of the system, such as reselling goods domestically, has cost the country hundreds of billions of yen in lost tax revenue. Originally designed to attract tourists, the system exempts foreign visitors from Japan’s 10% consumption tax on qualifying purchases.  
However, with Japan’s weak yen already drawing travelers, critics say tourists would visit regardless of tax perks. Some suggest the current system unfairly benefits urban retailers and causes strain on customs services, especially with plans to shift tax refunds to the point of departure starting in 2026. Supporters of the exemption, like store owners and tourism advocates, argue that removing it could push shoppers to other countries like South Korea.  
As Japan targets 60 million visitors by 2030, the debate highlights a deeper issue: how to balance economic gains from tourism with tax fairness and local concerns over rising prices and overcrowding.