Japan is seeing more tourists and foreign residents than ever before. While this is great for the economy, some lawmakers believe it’s time to review the rules to keep things fair and smooth for everyone. From changes in visa and license rules to a possible tax hike for tourists, Japan is considering serious reforms.
On May 21, the ruling Liberal Democratic Party (LDP) formed a special panel to look into concerns raised by Japanese citizens. Their main goal? To make sure the rapid increase in foreign residents and tourists doesn’t create problems for local communities, services, and the economy.
What’s Changing for Foreign Residents?
One of the key topics under discussion is the process that allows foreign nationals to easily convert their driver’s license from their home country to a Japanese one. Currently, some people can skip parts of the Japanese driving test depending on where their original license was issued. But LDP leaders are now questioning whether this is safe or fair.
“We need to comprehensively discuss what the people are concerned about,” said LDP policy chief Itsunori Onodera. He emphasized that both the central and local governments must work together to address these issues.
In simple terms, the LDP wants to make sure that foreign residents are following the same standards as Japanese citizens. This could mean stricter checks or longer procedures for things like getting a license or accessing public services.
Tourists May Pay More
Japan has become one of the top destinations in the world, especially after COVID-19 restrictions were lifted. However, this boom in tourism has also raised concerns about how tourists use local resources.
Last week, an LDP study group even suggested scrapping Japan’s popular tax-free shopping program altogether. This program allows tourists to buy certain items without paying Japan’s consumption tax, currently at 10%. It’s a major draw for international visitors.
But some officials argue that this system is being misused. There are reports of tourists buying goods tax-free and then selling them online or sending them home to avoid taxes in their own countries.
Instead of offering tax-free shopping, the government is considering a “departure tax” increase or higher consumption tax on purchases made by visitors. The extra money collected could be used to maintain public infrastructure and support communities affected by heavy tourism.
Why Now?
The push for new policies comes at a time when Japan is seeing record numbers of both foreign workers and tourists. While this is good for business, it can create stress on housing, schools, transportation, and healthcare systems—especially in rural areas or popular tourist spots like Kyoto and Osaka.
The government is trying to find a balance: welcoming visitors and foreign talent while also protecting the daily lives of Japanese citizens. Many lawmakers feel it’s time to tighten the rules so everyone plays by the same standards.
What Happens Next?
These ideas are still in the proposal stage, so nothing has been finalized yet. However, the LDP panel is expected to continue discussions throughout the summer. If the changes are approved, we could see new rules for licenses, visa renewals, and taxes as early as 2026.
Foreign residents, tourists, and businesses should keep an eye on these developments, as they may affect how people live, work, and travel in Japan.
FAQs
1. Will it become harder for foreigners to get a Japanese driver’s license?
Possibly. The government is discussing whether to tighten the rules for converting foreign licenses. If approved, people may need to take additional tests or meet stricter requirements depending on their country of origin.
2. Will tourists have to pay more when visiting Japan?
Yes, that’s being considered. Japan might increase the departure tax or scrap tax-free shopping for tourists. These changes are meant to make sure visitors also help pay for the services they use during their stay.
As Japan navigates these changes, the goal is clear: create a fair and sustainable system that works for both its citizens and the growing number of visitors who love the country.
Source:https://www.japantimes.co.jp/news/2025/06/05/japan/politics/foreign-residents-visitors-tax/
