Japan Shopping Tourism Organization (JSTO) announced that abolition of the current tax-free shopping (TFS) system for foreign visitors to Japan may bring about negative economic influences to the whole tourism industry, based on the analysis study by a third-party organization. 

International visitors to Japan spent about 8.1 trillion yen in total in 2024, out of which tax-free shopping was estimated at 1.44 trillion yen. 

According to the study results, if TFS is abolished, Japan may lose 847 billion yen of GDP because foreign visitors and spending by them are expected to reduce. Even though revenue from consumption tax on their shopping is added,  revenue from net tax is estimated to reduce by 53 billion yen. 

Also, abolition of TFS is estimated to reduce international arrivals by 4.5% or 1.6 million. Shopping expenditure to the current duty-free items is estimated to reduced by 22.8% or 364.5 billion yen.